Title insurance is your policy of protection against the loss if a claim is made against your ownership because of fraud, forgery, judgments, unpaid real property taxes, liens, or other defects in title. The title insurance company will, at its own expense, defend the title and will pay losses within the coverage of the policy if they occur.

In most cases the buyer will be required by the lender to obtain a Lender's Policy of Title Insurance in order to obtain financing. In some cases the buyer may also elect to purchase an additional Owner's Policy of Title Insurance. If the property is a foreclosure it is recommended to also obtain the owner's policy.