Title insurance is a type of insurance that protects property buyers and lenders from financial losses due to defects in a property's title. This can include issues like unpaid taxes, liens, or claims from previous owners. When you purchase a home, a title search is conducted to identify any potential problems, and title insurance provides coverage against these risks. If a title issue arises after the purchase, title insurance can help cover legal fees and any financial losses incurred. It ensures that the buyer has clear ownership of the property, giving peace of mind during the home-buying process.