Title insurance insures against loss sustained by the insured if the title is in actuality other than as insured. The beneficiaries of title insurance policies generally are real estate buyers and lenders.
A title insurance policy protects the named insured against title defects, liens and encumbrances existing as of the date of the policy and not excepted from coverage. For a one-time premium, the policy remains in effect until the property is sold or refinanced.