Title Insurance protects the insured from losses as the result of claims on one's ownership of land. If the title is insurable, the company guarantees the owner or lender against loss due to any defect in title and will compensate for any valid claims as well as pay for legal fees to defend the title. This is probably one of the most comforting features of Title Insurance. When you buy a home, it is necessary to know information about other's rights to the property. But even the most diligent search of public records could fail to disclose a number of title defects.
Fees vary, but the cost is directly related to the value of the property.
The higher the value, the more coverage is needed. The premium is a one time only cost that doesn't have to be renewed like other insurance. Most commonly, the two different types of title policies issued are mortgage policies and owner's policies. The mortgage policy protects the lender's interest in the borrower's loan. The owner's policy protects the buyer's investment in the property.