What is Title Insurance?

A title insurance policy is a specialized form of insurance coverage that protects owners of real property. In some respects, title coverage is similar to automobile insurance, in that it provides you with protection from losses that may occur in the future (like someone rear-ending your vehicle on the Tollway or stealing it for parts). But title insurance is different, in that it provides coverage for future claims or losses due to defects in title to your real property created by a past event—something that may have occurred prior to your purchase of the property, but is unknown at that time. These risks are far less obvious than the risks typically covered by automobile insurance. But when you consider the investment that most people make in their homes, it’s easy to see that they can be far more costly and devastating.