What is the purpose of Title Insurance?

The purpose of title insurance is to provide protection to buyers and lenders from potential defects in a property's title. This type of insurance ensures that the purchaser has a clear and marketable title to the property, free from claims or liens that could arise from previous ownership or undisclosed issues. Title insurance covers financial losses that may result from issues such as fraud, forgery, or errors in public records that could affect the ownership of the property.

The value of title insurance becomes evident during real estate transactions, as it helps facilitate a smooth transfer of ownership and provides peace of mind that the property is free from legal encumbrances. Unlike other types of insurance, title insurance is typically a one-time premium paid at closing, covering the duration of ownership.