Title insurance is a type of insurance policy that protects against financial losses resulting from defects in title to real property. It is meant to cover issues such as errors, omissions or fraud in the ownership records, encumbrances like liens or judgments, and other matters that may affect the validity of the title.
The insurance policy typically covers the cost of any legal fees and expenses involved in defending a claim against your property title, as well as paying for any losses due to invalid titles. It can also cover the costs associated with clearing up title issues or obtaining a new title if necessary.
Title insurance is usually required by lenders when you are purchasing a home using a mortgage loan, and it provides protection for both the buyer and the lender. The cost of the policy is typically included in your closing costs, and it remains in effect as long as you or your heirs own the property.