What is meant by "title insurance" in real estate?

Title insurance is fundamentally a policy that protects against title defects. When someone purchases real estate, they need assurance that the title, or ownership claim, is clear of any issues that could affect their rights to the property. Title defects may include things like undisclosed liens, ownership disputes, or errors in public records.

By providing protection against these potential issues, title insurance helps buyers and lenders ensure that they are legally protected should any title problems arise after the purchase is made. This peace of mind is crucial, as it allows individuals to move forward with confidence in their ownership and investment in the property. Other options address different concepts: repair costs relate to home insurance, homeowner protection against damage pertains to different forms of insurance, and a document proving ownership refers to the deed rather than insurance.