What does title insurance primarily protect the buyer from?

Title insurance primarily protects buyers from past ownership problems and boundary issues. The primary purpose of title insurance is to safeguard against risks associated with the ownership history of a property. This includes issues such as liens, deeds that are found to be fraudulent, claims from previous owners, or errors in legal descriptions that could affect ownership rights.

When a title company conducts a title search before issuing a policy, they look for these historical problems that could affect the buyer's right to fully own or use the property. If any undiscovered issues arise after the purchase, title insurance can cover the financial consequences.

While future claims, property disputes, or tenant-related issues could potentially be addressed through other types of insurance or legal mechanisms, title insurance specifically aims to mitigate risks stemming from the property's past, thereby ensuring that the buyer enjoys clear and marketable title to their new home.