What is title insurance?

Title insurance is a policy that protects a property owner or lender against financial loss from defects in the title that already existed when you purchased. That covers things a title search might not reveal, such as forged signatures, recording errors, undisclosed heirs, unpaid liens, or fraud. If a covered claim arises, the title insurer defends your ownership in court and pays valid losses up to the policy amount. It’s a one-time premium paid at closing, not a recurring bill, and it looks backward at the property’s history rather than forward at future risk.