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Why do buyers need title insurance. Without a title insurance policy, there is no protection for the buyer. Any hidden problems not disclosed by public records or a mistake in tile examination might hold the buyer accountable for any prior issues relating to the property.y definition, title insurance is A policy issued by a title company after searching the title and which insures against loss resulting from defects of title to a specifically described parcel of real property or from the enforcement of liens existing against it at the time the policy is issued.
A title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property.Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title.nce the title is found to be valid, the title company will likely issue a title insurance policy, which protects lenders or owners against claims or legal fees that may arise from disputes over the ownership of the property.