As an ordinary course of action, I often recommend title insurance (although I won't specify which company) to clients who are purchasing new property. In my travels, only about two clients have ever tried to dispute whether or not to purchase it. One client felt that it was only for my benefit since it reduces the number of searches a solicitor must conduct and the other, despite claiming to be an experienced real estate investor, had trouble grasping the whole concept.

Does title insurance protect the lawyer? Somewhat. It covers several items and allows the solicitor not to conduct certain searches. It covers any loss the purchaser may suffer due to the items listed in each policy. It can often even cover items that would not have been disclosed in a lawyer's search. What is covered, however, varies from carrier to carrier. One company, for example, will not cover property tax arrears and will require the solicitor to conduct a search of taxes. Another company will cover almost everything, including things that the lawyer is normally supposed to be responsible for.

The biggest coverage that only title insurance providers can provide you with is fraud protection. I've had many clients consult me just to purchase existing owner coverage so that in the event someone tries to sell the property from under them, they are covered.

So when your real estate lawyer asks you if you want title insurance, you should really consider it. But you should also ask your lawyer what the policy covers and for options with other insurers.