8315 W. 10th Street, Indianapolis IN 46234. 

The Importance Of Title Insurance In Protecting Your Property

March 22, 2024

Property owners need title insurance to protect their investments from unexpected financial and legal complications. Other than this, is there anything else title insurance can offer?

In this post, we'll try to answer that, explore more on the importance of title insurance, and highlight various situations where it becomes essential. 

Why Title Insurance Is Important?

Lenders and homeowners are protected by title insurance. Some of this include encumbrances, liens, public record inaccuracies, legal conflicts, and earlier property claims. It provides peace of mind by guaranteeing that the property's ownership is unambiguous and free of any potential threats or difficulties.

Title insurance safeguards against claims or historical occurrences before the policy was issued rather than other forms. It offers protection against known and unexpected problems resulting from the property's past ownership records.

Here are the two different kinds of policies for title insurance:

  • Owner's Title Insurance: Title insurance protects the owner while they own the property. It covers title faults such as public record errors, concealed heirs, counterfeit deeds, and title search problems. Buyers purchase this policy when they buy property. 
  • Lender's Title Insurance: Title insurance protects the lender's property investment. Mortgage lenders usually require title insurance to safeguard their interests in case of title flaws or disputes. Borrowers pay for this policy as part of closing fees. 

The following includes common title issues and risks:

  • Title insurance protects against common title concerns, including boundary disputes, liens, and unknown heirs. 
  • Boundary disputes may occur when nearby properties disagree about their property lines. Liens and encumbrances, including delinquent mortgages or taxes, can also jeopardize title. 
  • Hidden heirs or prior owners may also challenge your ownership rights. 
title insurance files

Who Benefits From Title Insurance?

The ability of title insurance to guard against monetary loss brought on by title flaws is one of its main advantages. The following are the main benefits and safeguards of title insurance: 

1. Protection Against Financial Losses

Title insurance covers financial losses due to title defects. A title insurance claim will pay your losses, including legal fees, to defend your ownership rights. This coverage may safeguard you from significant financial and legal fees. 

2. Legal Expense Coverage

Title insurance protects the legal expenses associated with protecting your ownership rights. If someone challenges your ownership or files a title claim, the title insurance company will pay the legal fees. This coverage reduces the financial burden of judicial proceedings.

3. Keeping Property Ownership Clear

Title insurance guarantees clear and marketable property ownership. If a title defect threatens your ownership rights, title insurance will cover the costs of fixing it, allowing you to keep your property without spending more.

4. Protection Against Risk And Challenges

Title insurance protects against boundary disputes, unpaid liens, unreported easements, property use restrictions, and public record errors. These risks may jeopardize property ownership and lead to expensive legal disputes.

5. Property Owners' Peace of Mind

Title insurance provides property owners peace of mind that their investment is guarded. It can also provide confidence in home ownership by preventing title defects from causing stress and financial issues.


Title insurance is a crucial instrument for protecting property rights and maintaining owners' peace of mind, serving as a defense against false claims and a means of settling boundary disputes. 

A previously hidden heir, a lienholder, or a fraudulent deed signing might lead to title insurance claims. It also protects your investment in each scenario.

You can learn more about title insurance here.

If you have more questions on title services and/or insurance, you may call us at 317-214-6023 so we can assist you!

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8315 W. 10th Street
Indianapolis IN 46234

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