When you buy title insurance for your property, the title company conducts an in-depth review of public records to make sure there are no problems with the title. Title searches can uncover title issues like liens, judgments, information on prior loans, assessment taxes, and other issues. The title company will then work to fix any defects that are found before the transaction closes.
The title company will then issue an insurance policy that will help protect you from a variety of issues that might be uncovered later. Unlike homeowners insurance that is limited to future incidents, title insurance is limited to problems that already exist when the policy is issued. If you should happen to have problems related to the title of your home, your title insurance policy includes coverage for legal expenses that may be necessary to investigate, litigate, or settle a claim.