What is Title Insurance?
Title insurance protects the buyer and/or lender against financial loss from problems with the property’s title that existed before the purchase — such as undisclosed liens, record errors, or competing claims. Unlike most insurance, it is a one-time premium paid at closing that covers past issues, not future events.
Example: A year after closing, a previously unknown heir claims part-ownership; the owner’s title insurance covers the legal defense and any covered loss.