Title insurance is your assurance that title to your property is free and clear of anything that would hinder your ability to sell or borrow against your property.
This unique form of insurance protects you from past events. These could be unpaid debts, misinterpretation of instruments (like wills and deeds), forged documents, undisclosed heirs, judgments against previous owners.
An Owner’s Title Policy can protect you from unforeseen problems that limit your use and enjoyment of the property and bring financial loss. Only an Owner’s Policy fully protects you should a covered title problem come up that was not found during the title exam.
Most mortgage lenders require you to pay for a Lender’s Policy, which insures the validity and position of their lien, and protects them for the amount of the loan.