When purchasing a home, you are told you need title insurance. OK – so what is title insurance.
The purpose of title insurance is to protect real estate owners and lenders against property loss or damage due to liens, title defects or other matters. Title insurance will defend against lawsuits against the title or it will reimburse the insured party for an actual monetary loss. The policy limits the loss up to the amount the policy provides for.
Title insurance provides coverage for both the buyer and a lender.