What does title insurance actually protect against?

Title insurance protects against a defect in the property's ownership history that was not caught during the title search, such as a forged signature, an unrecorded lien, an undisclosed heir or a boundary dispute. It pays legal defense costs and covers a valid claim up to the policy amount, unlike a home warranty, which covers systems and appliances. Coverage runs for as long as you or your heirs own the property, not just until closing. Ask your closing attorney what specific exclusions apply to your policy.