What does title insurance provide to buyers?

Title insurance provides buyers with protection against title defects, which can include issues such as liens, encumbrances, or disputes over property ownership that may not be discovered during a title search prior to closing. The policy ensures that if a defect is later found, the insurance will cover the financial loss incurred as a result of the defect, helping to safeguard the buyer's investment in the property.

Unlike a guarantee of property value, which is not something title insurance offers, the primary focus is on ensuring clear ownership free of legal issues. Additionally, title insurance does not cover losses related to rental income or offer protection against property-related lawsuits that fall outside the scope of title issues, making its role specifically about clearing and protecting title interests.