Published November 5, 2025

What is Title Insurance? Do you need it?

Written by Chelsea Reed

What is Title Insurance? Do you need it? header image.

Understanding Title Insurance in Pennsylvania: What It Is, Why You Need It, and How You Can Take Title

Buying a home is one of the biggest investments most people make in their lifetime. While home inspections and appraisals protect your investment in some ways, there’s one crucial layer of protection that’s often overlooked — title insurance. If you’re purchasing property in Pennsylvania, understanding title insurance and how you take title can help ensure your ownership is secure long after closing day.

What Is Title Insurance?

Title insurance is a special kind of insurance policy that protects homebuyers and lenders from potential problems or claims against a property’s title. In simpler terms, it ensures that you truly own your property — free and clear of any legal disputes, unpaid liens, or ownership issues that may have happened before you bought it.

Before closing, a title company conducts a detailed title search, reviewing public records to verify ownership history and uncover any existing issues. However, even the most thorough search can miss hidden problems such as:

Clerical or filing errors in public records
Forged signatures on past deeds
Unknown heirs who claim ownership
Unpaid property taxes or liens
Boundary or survey disputes

If any of these issues surface after you’ve purchased your home, title insurance covers your legal costs and potential financial loss, giving you peace of mind that your ownership is protected.

Why Title Insurance Is Important in Pennsylvania

In Pennsylvania, title insurance isn’t legally required, but nearly all mortgage lenders will require a lender’s policy to protect their interest in the property. Buyers also have the option (and strong incentive) to purchase an owner’s policy, which protects your equity in the home.

Here’s why it’s so important:

Protects Your Investment: Your home is likely your biggest financial asset. Title insurance ensures you won’t lose it to an undiscovered ownership dispute.
Covers Legal Costs: If someone challenges your ownership, your policy pays for attorney fees and court expenses.
One-Time Payment, Lifetime Coverage: You pay a single premium at closing, and coverage lasts as long as you or your heirs own the property.
Required for Most Mortgages: Lenders will not fund a mortgage without confirming that clear title is protected by insurance.

How You Can Take Title in Pennsylvania

When you buy property in Pennsylvania, you’ll also need to decide how you want to take title — meaning how ownership will be legally recorded. The way you hold title affects what happens if you sell, refinance, or if an owner passes away.

Here are the most common ways to take title in Pennsylvania:

Sole Ownership:
- For a single individual buying property alone.
- The property passes according to your will or estate plan.
Tenants in Common:
- Two or more people own the property together, but not necessarily in equal shares.
- Each owner can sell, transfer, or bequeath their share independently.
Joint Tenants with Right of Survivorship:
- Equal ownership by two or more people.
- If one owner dies, their interest automatically transfers to the surviving owner(s).
Tenancy by the Entireties (Married Couples Only):
- Exclusive to legally married couples in Pennsylvania.
- Offers survivorship rights and strong protection from individual creditors.

Choosing the right way to hold title is just as important as securing title insurance, since it affects ownership rights, inheritance, and future legal decisions.

The Bottom Line

Title insurance may not be the most glamorous part of buying a home, but it’s one of the most valuable safeguards you can have. In Pennsylvania’s historic and diverse real estate market — where many properties have long ownership chains — even a minor title issue can cause major headaches without proper protection.

By working with a trusted title company and understanding how you’ll take title, you can protect your investment and enjoy your home with confidence and peace of mind.

Have questions about title or need a recommendation feel free to reach out to us.