Title insurance protects you and your lender from loss if a property ownership dispute occurs. Before you purchase a property, it’s likely to have gone through several ownership changes, and the land on which it stands went through many more. There may be a weak link at any point in that chain that could emerge to cause trouble. For example, there may be unpaid real estate taxes or other liens. Title insurance is protection against loss arising from problems connected to the title to your property. Title insurance covers the insured party for any claims and legal fees that arise out of such problems.