Title insurance

Title insurance covers problems with ownership of the property — title fraud, forged documents, undisclosed liens, survey or zoning issues, and encroachments — that a standard search might miss. It's a one-time premium paid at closing, not an annual cost.

Lenders require their own title policy as a condition of funding. For a small additional amount you can add an owner's policy that protects you directly, which most lawyers recommend given the rise in title-fraud cases.

It's distinct from property (home) insurance, which covers physical damage. Title insurance covers the legal right to own — both are typically required to close.