What’s a Title Policy, and Do I Really Need It?

When you buy a home in Texas, you’re not just purchasing the property—you’re buying its history. And that’s where your title policy comes in.

A title policy, also known as title insurance, protects you and your lender against any legal issues that might pop up after you close—issues tied to the home’s ownership history. In Lubbock’s real estate market, every transaction includes one, and for good reason.

Here’s what it actually does:

1. Protects Against Hidden Title Problems
Even with a full title search, some issues don’t surface until later. Think:

• Unreleased liens or unpaid taxes

• Clerical errors in past deeds

• Undisclosed heirs or ownership disputes

• Fraudulent signatures or forgeries

If something like that appears after you’ve closed, your title policy covers legal defense costs and financial losses—so you’re not the one footing the bill.

2. Two Types of Coverage
There are two kinds of title policies:

• Owner’s Policy: Protects you, the homeowner, for as long as you own the property.

• Lender’s Policy: Protects your mortgage company until the loan is paid off.

In Texas, it’s customary for the seller to pay for the owner’s policy, and the buyer to pay for the lender’s—though this can vary depending on negotiations.

3. One-Time Premium, Lifetime Coverage
Unlike other insurance types, title insurance is a one-time cost at closing. Once issued, it lasts indefinitely—no renewals, no annual premiums.

4. Why You Need It
Most buyers never have to use their title policy—but for the few who do, it’s a lifesaver. One unexpected ownership claim can freeze your ability to sell or refinance. With title coverage, you’re protected from those surprises.

I’ve seen cases where a long-forgotten lien from decades ago threatened to derail a sale—and the title policy stepped in immediately.

It’s one of those invisible layers of protection that makes homeownership less risky and far more secure.

When you work with me, I make sure you understand exactly what your title policy covers and which title company is issuing it. Because peace of mind shouldn’t come with fine print.

In short: a title policy is the quiet guardian of your homeownership—and yes, you really do need it.

— Insights from Tess Hernandez, Realtor | Reside Real Estate