To protect their financial interests, buyers can choose to pay a one-time fee at closing for the owner's title insurance. This policy protects you and your heirs and requires the title insurer to pay costs and claims associated with a qualified title issue.
While it's optional, purchasing owner's title insurance helps safeguard your financial interests. Without it, homeowners would have to pay legal fees from their own pocket to fight title issues in court. You could even lose the property and any equity that goes along with it.
If you purchase owner's title insurance, the title company is responsible for covering those costs.