Title Insurance is a one-time insurance policy that protects the buyer or lender of real property from damages resulting from defects in the chain of title. A title search attempts to insure the property is free and clear of liens, encumbrances and any clouds on the title. However, in the event a claim arises in the future, title insurance is there to protect you against such claims.
After the transaction has been completed, and a title policy issued, you are protected from claims made on your title. If a claim was made, the insurance company will defend your title and bear the cost of settling any valid claims made on the property up to the full face value of the property.