What Is Title Insurance and Why Do Buyers Need It in the DMV?

Title insurance protects your right to own your home. It may not be exciting, but it’s one of the most important parts of the closing process.

What Title Insurance Does

A title company researches your property’s history to ensure there are no legal claims, liens, or ownership disputes. Even a past unpaid contractor or clerical error from 20 years ago can delay your ownership or cause legal problems.

There are two types:

• Lender’s Title Insurance: Required by most lenders, protects the bank.

• Owner’s Title Insurance: Optional (but strongly recommended), protects you.

What Can Go Wrong

Without title insurance, you could be liable for:

• Unpaid taxes or liens from previous owners

• Undisclosed heirs claiming ownership

• Mistakes in public records

• Fraudulent deeds or forgeries

In DC and Maryland especially, older homes often have longer chains of title — and that means more risk.

Final Tip:

Buy the owner’s policy. It’s a one-time fee that protects you for as long as you own the home. Peace of mind is worth it.