The term, “title” refers to the legal ownership rights to a home. Title insurance protects against “defects” in your home’s title that may cause an ownership dispute.
There are two types of title insurance: a mandatory lender’s policy and an optional owner’s policy that covers the homeowner. Although it is not required by law for you to purchase an owner’s policy, it is highly recommended to make sure that you, as a homeowner, are protected from any potential legal issues that may come up.
Read more about title and title insurance in our blog post What is title insurance and why do I need it