Why is having a title insurance policy essential?

Having a title insurance policy is essential primarily because it protects against financial loss from title defects. Title defects may include unresolved claims, liens, unpaid taxes, or errors in the public record that could affect the ownership rights of the property. If such issues arise after the purchase, the title insurance policy provides financial coverage, ensuring that the insured party is protected from potential legal fees or settlement costs associated with rectifying these issues. This protection is crucial for buyers, as it offers peace of mind regarding their investment and ownership of the property, making it a foundational aspect of real estate transactions.