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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 Owner's title insurance is usually issued for the amount of the real estate purchase. 2  You pay a one-time fee at closing and lasts as long as you or your heirs have an interest in the property.ypes of Title Insurance. 1  The Lender's Policy. 2  There are two types of title insurance: Lender's title insurance and Owner's title insurance. 3  Most lenders require a loan policy when they issue you a loan. 4  The loan policy is usually based on the dollar amount of your loan.