Costs & insurance
Title insurance
A one-time policy that protects against defects in a property's ownership history — liens, errors, or competing claims — issued in a lender's and an owner's version.
What does title insurance mean?
Title insurance guards against problems in a home's chain of ownership that a title search might miss: an old lien, a forged deed, an unknown heir.
There are two policies: the lender's, which protects the bank and is usually paid by the buyer, and the owner's, which protects your equity and by Michigan custom is paid by the seller.
Why it's a one-time cost
Unlike homeowners insurance, title insurance is paid once at closing and lasts as long as you own the home. It looks backward — covering defects that already existed in the property's history — rather than forward at future damage.
Common questions
What is the title reissue rate?
A discount for reusing an existing owner's policy when you refinance — it can save hundreds. Many Michigan owners never think to ask for it, so raise it with the title company before your refinance closes.
Related terms