What does title insurance protect against?

Title insurance provides protection primarily against defects in the title that may not be apparent at the time of purchase, as well as unforeseen claims made against the property. When someone buys a property, they want assurance that the title is clear and that they will not face issues that could jeopardize their ownership rights.

Future defects in the title can arise from various sources, such as clerical errors in public records, undisclosed heirs, or liens that weren't discovered during the title search. This means that even after the purchase, new problems could surface that would affect ownership.

Additionally, unforeseen property claims can occur when someone else asserts a right to the property, potentially due to disputes related to boundaries, easements, or other interests in the property that were not revealed during the purchase. Title insurance protects against these types of claims, ensuring that the owner does not face financial loss due to issues that were not detected before closing the transaction.

Having this insurance gives peace of mind to property owners, knowing that they are financially safeguarded against potential title-related disputes and issues that may arise after the sale.