Title insurance is an insurance policy that covers the loss of ownership interest in a property due to legal defects and is required if the property is under mortgage.  The most common type of title insurance is lender's title insurance, which is paid for by the borrower but protects only the lender. The owner's title policy can also be issued to protect a new purchaser and is most often paid for by the seller to protect the buyer's equity in the property. 

Title insurance protects both real estate owners and lenders against loss or damage that can occur due to liens, encumbrances or defects in the title to a property. This differs from normal insurance in that title insurance protects the insured against the potential event that someone else from the past has legal claim on the property.  These claims range from another person trying to claim ownership, fraud or forgery of title documents, easements and many other