Title insurance protects lenders and buyers for losses that happen because of title-related issues. The home title is the "ownership" of the property that gets transferred when the legal deed document is signed. However, in some cases, there may be issues around the ownership of the property and title insurance protects parties from financial losses that may be incurred as a result of an unclear title.
In a perfect world, titles would match the deed and the ownership records would be clear. However, there may be errors that make things more complicated:
There are more issues surrounding disputed titles. Title insurance makes sure your purchase is truly yours.