What Is Title Insurance?

Title insurance is a form of indemnity insurance that protects property owners and mortgage lenders against financial loss from defects in a property's title. Unlike other types of insurance that protect against future events, title insurance protects against past events — problems that existed before you purchased the property but were not discovered during the title search.

When you buy a home in California, a title company like Fidelity National Title conducts a thorough search of public records to trace the property's ownership history. This search looks for liens, encumbrances, easements, judgments, and any other issues that could affect your right to own and use the property.

Even with a thorough title search, some defects can remain hidden. Forged documents, undisclosed heirs, recording errors, or fraud in the chain of title may not surface during the search. Title insurance provides a financial safety net against these hidden risks.

There are two types of title insurance policies: the owner's policy, which protects the buyer, and the lender's policy, which protects the mortgage lender. In Los Angeles County, the seller customarily pays for the owner's policy, and the buyer pays for the lender's policy — though this is always negotiable.

Title insurance is a one-time premium paid at closing. There are no monthly payments. The policy remains in effect for as long as you or your heirs own the property.

Team Goeglein at Fidelity National Title has issued title insurance on more than 25,000 transactions across the South Bay and Westside LA. Matt Goeglein and Xavier de la Piedra IV personally oversee the title review process on every transaction to ensure agents and their clients are protected.