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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.
1 Typically runs $10 to $50 or more. 2  Title insurance. 3  In some states the seller must provide a policy of title insurance for the buyer. 4  The cost of the policy depends on the sales price of the home and its cost can vary from a couple hundred dollars to several thousand dollars. In some states the seller must provide a policy of title insurance for the buyer. 2  The cost of the policy depends on the sales price of the home and its cost can vary from a couple hundred dollars to several thousand dollars.