What does "title insurance" provide protection against?

Title insurance provides protection primarily against loss due to defects in title or ownership issues. This means that if there are any problems that arise concerning the ownership of the property—such as claims from previous owners or undisclosed liens—the title insurance policy would cover the financial losses incurred as a result.

The purpose of title insurance is to ensure that the buyer has clear ownership of the property without unforeseen legal issues that may arise after the purchase. This is crucial because title disputes can be time-consuming and costly, often involving lengthy legal proceedings. By having title insurance, property owners can mitigate the financial risks associated with these potential challenges, ensuring they have a valid and marketable title to their property.

Title insurance does not cover debts incurred by the owner, natural disasters, or legal fees associated with property disputes unless they relate directly to an issue with the title itself. Thus, it specifically serves to protect against issues regarding the legitimate ownership of the property.