The Surprising History of Title Insurance – Why It Protects Homebuyers in WA State
- Kendra Marroquin
- Apr 7
- 2 min read
Did you know that before title insurance, buyers had no protection if a property’s title was fraudulent? If someone else had a legal claim to the home...too bad! The buyer lost their investment with no recourse. Even Abe Lincoln’s father lost two homes because of title defects.
So, What Changed?
In 1868, a lawsuit called Watson vs. Muirhead highlighted the serious risks of real estate transactions. That case paved the way for title insurance, which now ensures that when you buy a home in Washington State, you’re protected against unexpected ownership disputes.
How Does Title Insurance Work?
Title Search – A title company investigates the property’s ownership history to uncover past liens, unpaid taxes, or claims that could impact your purchase.
Title Insurance – If an undiscovered issue pops up later, like an unknown heir contesting ownership, title insurance protects you financially and legally.
Who Pays?
In WA State, the seller typically covers the Owner’s Title Policy, while the buyer pays for the Lender’s Title Policy (if financing).
Why It’s Essential for Homebuyers
Protects Against Ownership Disputes – Title insurance ensures your ownership is clear and defends you if someone challenges it.
Lender Requirements – If you're getting a mortgage, your lender requires title insurance to protect their interest.
One-Time Cost, Lifetime Protection – A single payment at closing covers you for as long as you own the home.
Title insurance isn’t just another fee—it’s peace of mind that your home is truly yours.
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