Let’s say you buy a piece of property such as a new home. You get a title to the property, but how do you know that the title is good? What if there is a problem with the title from some time in the past? Maybe someone forged his name when transferring the title in the past, so that your title is in question. There are numerous such problems that could possibly arise. Could this result in claims against you and the legal fees that go with it?
Title insurance is designed to protect you against this type of problem. In other words, title insurance is protection against loss arising from problems connected to the title to your property.