What is title insurance?

Title insurance is an insurance policy that insures the status of title in the name of the policy owner (usually the buyer). A title insurance company issues title insurance to you, as the insured, to protect against financial loss related to your title as well as any cost of defending your title in court if there are any future problems with your real estate title. Claims against your real estate title can be long and expensive, so title insurance protects both you and your mortgage lender against future issues. The title insurance premium is a one-time payment and protects you as long as you own or have interest in the covered property.