What is title insurance, who needs it, and what does it actually protect you from? Read below to find out!

What Is Title Insurance — A Georgia Closing Attorney Explains

Buying a home is exciting — and complicated. One of the few non-negotiable items at closing (if you’re financing) is title insurance. But what is title insurance, who needs it, and what does it actually protect you from? Read below to find out!

Quick answer

Title insurance is a one-time insurance policy that protects property owners and mortgage lenders against losses resulting from defects, liens, competing ownership claims, or other problems in the property’s title that existed before you bought the property.

Why title insurance exists (and how it differs from other insurance)

Homeowners insurance protects against future events (fire, storm, theft). Title insurance protects against past problems in the public records or ownership chain — things like a forgery on a deed, an undisclosed heir who claims the property, an undisclosed lien, or clerical recording errors. Title insurance companies perform a title search and will either clear problems before closing or insure against them.

Two main types of title insurance

Lender’s (mortgage) title policy: Required by most lenders when you finance a purchase; protects the lender’s security interest for the life of the loan.

Owner’s title policy: Optional but strongly recommended for buyers; protects the owner’s equity and legal rights to the property for as long as you or your heirs own the property.

Why Georgia is different — the attorney-closing requirement

Georgia requires certain closing functions to be performed or supervised by a licensed attorney (an “attorney-closing” requirement). That means your closing attorney plays a central role in reviewing title work, clearing issues, and disbursing funds — and is a key layer of protection alongside the title insurance policy. Having an experienced Georgia closing attorney helps ensure the title search and closing paperwork are done correctly.

Most common title problems (what title insurance protects against)

Title searches commonly find issues such as:

Errors in public records (misspelled names, incorrect notary acknowledgments).

Unknown liens and unpaid taxes.

Undisclosed heirs or forged signatures in prior deeds.

Boundary disputes or undisclosed easements.

Breaks in the chain of title that may show someone else owns (or claims) the property.

Fraud

Many of these can be cured before closing — but title insurance covers the buyer and lender if a hidden problem surfaces later.

Is title insurance worth the cost?

Title insurance is a one-time premium paid at closing. Lenders typically require a lender’s policy; purchasing an owner’s policy is optional but provides lasting protection for the homeowner and their heirs. Recent industry discussions and pilot programs have explored ways to lower costs for low-risk refinances, but owner’s protection remains valuable for most buyers.

How Heritage Closing Firm helps you with title insurance

Order and review the title search and exam.

Explain the differences between lender and owner policies and recommend coverage tailored to your situation.

Handle “curative” steps (clearing liens, correcting records) or coordinate with the insurer to resolve exceptions before closing.

Prepare and supervise the closing, and ensure funds and policies are properly recorded and delivered.

Practical tips to lower title costs and get the right protection

Shop for title services — you can compare title agencies and ask for itemized fees.

Ask about reissue or simultaneous issue rates if the seller has recent owner’s coverage (may lower your premium).

Buy an owner’s policy if you plan to stay long-term or want to protect equity and heirs.

Have your closing attorney review the title commitment line-by-line and explain exceptions before you sign.

Frequently Asked Questions

Q: Do I need title insurance in Georgia?A: Lenders typically require a lender’s title policy when you finance a purchase. An owner’s title policy is optional but recommended to protect your ownership and equity.

Q: How much does title insurance cost in Georgia?A: Cost depends on purchase price and state rate tables; it’s a one-time premium paid at closing. Ask your closing attorney for an estimate based on the purchase price.

Q: What does title insurance NOT cover?A: Typical exclusions include zoning issues, future boundary disputes, and problems that arise after the policy date (unless they stem from past defects); read your policy for exact term