When buying a home, you want a title insurance policy. It’s the best way to protect yourself against title defects that have occured in the past. Some of the past issues may not appear until after you’ve taken ownership of the home.
Before a title policy is issued, a serach of public records will produce a title report. The report gives a description of the property, along with any title defects, encumbrances or liens uncovered in the title search process. It’s not the same thing as casualty insurance because you pay a one time fee and it protects you against past, rather than future events.
Title insurance protects you against title defects that were’nt discovered during the title search. If a defect is discovered after closing, you’re covered under your title insurance policy. The insurance covers you against title defects for as long as you own the property.