What is the main function of property title insurance?

The main function of property title insurance is to safeguard against legal claims or defects in property ownership. When a buyer purchases a property, they typically acquire the title to that property, which may come with various risks, such as outstanding liens, claims by other parties to ownership, or issues stemming from errors in public records. Title insurance helps protect the buyer and their lender from financial loss in such situations, ensuring that the ownership of the property is clear and free from any undisclosed legal issues.

This form of insurance provides coverage for legal expenses that might arise due to disputes over the property title and can help resolve issues that could affect the owner's right to the property. In essence, it offers peace of mind to homeowners and lenders by mitigating risks associated with property ownership and securing their investments.