What is "title insurance"?

Title insurance is a specialized form of insurance that provides protection against discrepancies or defects in the title of a property. This can include issues such as outstanding liens, forgeries, or errors in public records that could affect ownership rights. When someone purchases a property, title insurance ensures that if a title defect is discovered after the purchase, the insurance company will defend the owner’s title or compensate the owner for their loss, up to the policy limit.

By securing title insurance, buyers can have peace of mind knowing that their investment is protected from unforeseen legal claims or issues related to the ownership of the property. This type of insurance is a crucial aspect of real estate transactions as it mitigates potential financial losses that could arise from title-related problems.