Title insurance is the application of insurance to real estate titles.
Unlike other types of insurance which protect the insured from losses due to unexpected future events, title insurance protects from events that took place in the past. Title insurance protects the buyer from previously unreported land title defects, such as claims arising from past errors, recording errors, forgeries or other problems. Title insurance will provide coverage up to the face value amount of the policy if future claims against the title to real property results. These claims can result either in the loss of title to the property or in expenses to clear up the title defects that are uncovered by claims of errors, forgeries or other problems. A future claim against the title to real property requires legal defense.