Title insurance is a form of indemnity insurance that insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.

Yes. The essence of property ownership is that you can freely occupy, use, sell or pledge it in any way you see fit. Title insurance covers these rights and protects your investment.

Title insurance protects against financial loss or damage occurring from liens, encumbrances, and defects in the title. It also protects against losses up to the coverage limit if the owner's right to actually own the property is challenged -- for instance by an undisclosed heir of the previous owner.

Generally, title insurance costs about 1 percent of the purchase price of the home.

Title insurance protection lasts as long as the owner holds title to the property. Unlike other kinds of insurance, title insurance premiums are only paid once.