What is "title insurance"?

Title insurance is a specific type of insurance that protects against losses resulting from defects or issues related to the title of a property. When purchasing a property, buyers want to ensure that the title is clear and free of any encumbrances, legal claims, or disputes that could affect their ownership. Title insurance offers coverage for various potential problems, such as errors in public records, liens, undisclosed heirs, or fraud that may not be discovered until a claim arises.

This protection is crucial since title issues can lead to financial losses or complicated legal situations for homeowners. The policy typically covers both legal fees and any potential financial loss, providing peace of mind to property owners that their investment is secure against unforeseen title-related claims. By covering these risks, title insurance plays a vital role in real estate transactions, ensuring that buyers can confidently proceed with their purchase.