Title insurance is a one-time premium that protects buyers and lenders from financial losses arising from defects in a property's title — such as unpaid liens, forged deeds, undisclosed heirs, survey errors, or fraud discovered after closing. There are two types: the lender's policy (required by virtually all mortgage lenders, protects only the lender up to the loan amount) and the owner's policy (optional but highly recommended, protects the buyer for as long as they own the property). Premiums are paid once at closing and vary by state — some states regulate rates through rate filings while others allow market competition.