What is title insurance and do I need it in Wisconsin?
Rob Miller explains what title insurance covers in Wisconsin, the difference between lender's and owner's policies, and whether you can skip it.
Rob Miller, Branch Manager at MadCity Home Loans, explains title insurance — one of the least understood line items on a Closing Disclosure.
What is title insurance and do I need it in Wisconsin?
Title insurance protects against problems with a property's ownership history — things like undiscovered liens, unpaid taxes from a prior owner, fraud, clerical errors, or disputes over ownership that can surface after you've already purchased the home.
Two Types of Title Insurance
- Lender's Title Insurance: Required on virtually every mortgage. It protects the lender's financial interest in the property. The buyer pays for this at closing — it's a standard closing cost.
- Owner's Title Insurance: Optional but strongly recommended. It protects your equity and ownership rights. It's typically a one-time premium paid at closing and covers you for as long as you own the property.
What Does It Actually Protect Against?
Real examples I've seen in Wisconsin: a prior owner's contractor placed a mechanic's lien on the property that wasn't discovered until after purchase. A forged deed from decades ago that surfaced during a chain-of-title search. An heir claiming an interest in a property sold by an estate without proper probate.
None of these are common — but they do happen, and when they do, the cost to resolve them can be enormous. Owner's title insurance is typically $300–$600 for a $350,000 property. It's cheap for what it covers.
Related Guide: See a full breakdown of all Wisconsin closing costs in our Closing Costs Guide.