Title insurance protects against claims from defects. Defects are things such as another person claiming an ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items that are specified in the insurance policy. If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense, in addition to paying all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the amount of your policy.