Settlements & Title Insurance Title Insurance is an insurance policy that protects an owner (or the lender) against claims for outstanding mortgages, unpaid real estate taxes, and/or liens on the property. The policy may have limits on its coverage, such as excluding uses based upon zoning and governmental regulations. The premium for title insurance differs from other insurance in that it is paid only one time for coverage that extends until the owner sells or transfers the real estate. Some lenders require the purchase of new title insurance each time an owner refinances the real estate. The premium for the policy is generally based upon the price of the property or the amount of the loan against the property. Although abstracting companies, which may be suggested by your broker, can issue title insurance, they do not provide the additional services, such as explaining intricacies of the documents and explaining limitations on the property’s use involved in the transaction, which an attorney who is experienced and knowledgeable in real estate law will provide. The price of all title insurance is based on the inclusive rate approved by the Pennsylvania Department of Insurance.