Title Insurance is the protection against loss or damage arising from defects connected to the title to your property.
The prospective home you may be purchasing or refinancing may have gone through several ownership changes and the land on which it rests, may have gone through several more. Within this chain of title, there exists the potential for an emergence of a defect. For example, someone from a past conveyance may have misrepresented him or herself and executed a deed transferring ownership of the property to an unsuspecting third person or party. Another example would be the current owners of the property were recently foreclosed upon, however the foreclosure process was not done in accordance with all required Sections of the Real Property Action and Procedures Law giving the immediate past owners recourse to re-enter the property.
The Title Insurance Policy, which is issued at the time of closing, covers the insured party against any claims that may arise from the time of purchase or refinance, up to and including any event arising prior to said purchase/refinance date. As such, the policy will cover any legal fees incurred in the defense of any such claim which may have arisen therefrom.