Even though a thorough title search is performed,  the Title Insurance Policy protects against hidden defects which do not show up on the title search. There are two types of title insurance.

Lender’s Title Insurance only protects the lender, and is almost always required by the lending company, whether the transaction is the original purchase of the property or a subsequent refinance.  The purchase of the policy is part of customary closing costs. Since most people borrow the money required to purchase real estate, this policy is nearly always issued during the closing process.

Owner’s Title Insurance protects the owner. This policy should be issued when the property is purchased.   The Owner must decide to buy the Owner's Title Insurance Policy - it is not an automatic part of the loan closing process.

If someone initiates a claim against your title, an Owner’s Title Policy provides you with a legal defense.  If your title should fail, the insurance reimburses you the equity in your home up to the value of the policy.  The Owner’s Title Policy protects your investment as long as you own the property. 

You wouldn't consider purchasing a home without also purchasing a Hazard Insurance Policy to protect against fire.  If a home is destroyed in a fire, you can always rebuild.  If you lose the home because of a defect in the title, you lose everything. 

In order to provide the best coverage in any situation, Origin Title and Escrow issues lender and owner policies through several title insurance companies.

Origin Title also offers enhanced policies that protect the owner against post-closing events that could affect ownership.