Purchasers and lenders need title insurance to know the property they are buying is insured against various possible title defects. The insurance policy protects the lender and the buyer. Whether it’s a sale, refinance, construction loan…the seller, buyer and lender all benefit.

Title insurance protects against claims from title 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.

The insurance policy protects you in two main ways. First, the insurance company promises to protect your title in court whenever necessary – at their expense. Second, if there is a cost to settle your claim, should a valid claim against your ownership exist, the insurance company will bear the cost of settlement.