A title insurance policy ensures that:

Title insurance protects against losses arising from disputes over property ownership or other defects in title. It ensures the borrower (and lender) that the property being purchased is rightfully owned by the borrower and is free of undisclosed liens or encumbrances.

“Title insurance protects against losses if there are problems with the ownership of your property after you buy it. It guarantees that you legally own the home.”

— CFPB, What is title insurance?