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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.
So, if the sales price is $450,000 then the estimated title insurance will cost $2,205. If the property you are planning to buy was bought within the last four years, try and get a copy of the sellerâs existing title insurance policy to provide to your closing attorney or title company.t typically costs just a few hundred dollars more but is essential just in case a future issue emerges after closing on the house. 1  Home buyers paying cash are also advised to include a title insurance policy. 2  New home buyers are advised to buy a title insurance policy that includes Mechanicâs Lien coverage.