America's home place

You will normally be required to purchase lenders' title insurance to guard against a faulty title search as well as hazards that even the most thorough search will not reveal - such as a forged deed that does not transfer title, a claim by a previously undisclosed relative of a former owner, or a mistake in the records. For a one-time premium at closing, title insurance will clear up title problems, pay the lender's legal expenses for defending against an attack on title, or pay claims on property the lender may lose.

America's home place - Insuring Your Home