What does title insurance protect against?

Title insurance primarily protects against financial loss due to defects in title. This includes issues such as undisclosed liens, encumbrances, or ownership claims that may arise after the purchase of a property. When a property is bought, the buyer wants assurance that they actually own it free and clear of any legal claims or defects that were not revealed during the title search process.

Title insurance provides a safety net for homeowners by covering legal fees and compensating for potential financial losses that can occur if such defects are discovered after the transaction, thereby safeguarding the buyer's investment in the property. This form of insurance is crucial in ensuring peace of mind for property owners, allowing them to focus on their investment without the burden of unforeseen legal challenges related to title issues.