What does title insurance actually protect against?

Title insurance protects against a defect in a property's ownership history that was not discovered during the title search, such as an old unreleased lien, a forged signature on a past deed, or an heir who was never properly cut out of an estate. It covers legal defense costs if someone challenges the buyer's ownership and covers a financial loss up to the policy amount if that challenge succeeds. This protection lasts for as long as the owner holds the property, unlike most other closing costs that are one-time only in effect. Brian Beatty works with attorneys who explain these specific risks for each closing.