It’s insurance against undisclosed problems with the title, and it protects you against financial loss due to title defects, liens or other matters of public record. Title insurance will defend you against a lawsuit attacking your title, or reimburse you for the actual money lost. Before a policy is issued, a title insurance company conducts in-depth research to detect, prevent, and eliminate risks and losses caused by title problems. They do this by searching public records to develop and document the chain of title to the property and by identifying all outstanding claims. For a one-time premium, your owner's title insurance policy will remain in effect for as long as you own the property. Your mortgage lender will also require a title insurance policy. The lender’s policy protects the lender against any title problems that may affect repayment of the loan. The owner’s policy and the lender’s policy are two different policies, and the one-time premiums for both are usually paid by the home buyer. In a few states, the home seller pays for the owner’s policy. If you have a question about this, ask your real estate agent, mortgage lender, attorney or closing agent. I am not aware that any of those types of owners are more exposed to fraud than any others