Title insurance protects property buyers and lenders from financial loss due to defects in a property's title that were not discovered during the title search. These defects can include unpaid liens, recording errors, forgeries, undisclosed heirs, or boundary disputes. Unlike other insurance that protects against future events, title insurance covers past issues that may surface after closing. Lenders require a lender's title policy on every mortgage, while an owner's policy is optional but strongly recommended. For investors acquiring multiple properties, the cumulative risk of title issues makes this protection essential.