What does title insurance actually protect you from?

Protection against a hidden defect in the chain of title is what an owner's policy provides, covering things like a previous owner's unpaid contractor lien, a divorce that was never properly recorded, or a will contested after your purchase closes. Without that policy, you would personally bear the legal cost of defending your ownership if one of those problems surfaced. The policy is paid once, at closing, and stays in force for as long as you own the home. Ask your attorney to walk through a real example.