Why title insurance matters.
Every other policy you own covers what might happen. This one covers what already did.
What title insurance actually is
Every other policy you own covers something that might happen later. A fire. A storm. A car accident. Title insurance is the opposite. It covers what already happened before you got here.
Before you close, we search decades of public records on the property. Who has owned it, who has had a claim against it, what was recorded and what was never released. Most of what we find gets cleared before you sign anything. The policy is for what nobody could find.
A forged signature three owners back. An heir nobody knew about. A contractor who was never paid in 1998. A lien that was satisfied but never released. Those are not hypotheticals. They are the reasons this exists.
You pay for it once and it lasts as long as you or your heirs own the property. And in Texas, rates are set by the state, so the premium is the same at every title company. You are not shopping for a cheaper policy. You are choosing who handles your closing.
There are two policies, and only one protects you
If you are getting a loan, your lender requires a policy that protects the lender. Not you. It covers their loan balance, and it goes away when the loan is paid off.
The owner's policy is the one that protects you. It covers your purchase price, it lasts as long as you own the home, and it defends you if someone later claims an interest in your property.
Buyers regularly assume that because they saw a title charge on their disclosure, they are covered. Ask directly whether you are receiving an owner's policy.
Every transaction is different, and this is general information rather than legal or tax advice. Ask your agent, your escrow officer, and where it matters, an attorney.