By Sharon HasslerWhat is title insurance? Basically, a title insurance policy protects the investment of the new owner (and lender if there's a new loan) through measures such as covering legal costs for certain title disputes arising after transfer of title to the property.

Chicago Title Insurance Company

You've decided to purchase a home and hope to take possession as soon as possible. The terms have been agreed upon and all the financial arrangements have been made. But there's one important detail remaining. Before the transaction can close, a title search must be made.

By Fidelity National Title Insurance Company—A preliminary report is designed to facilitate the issuance of a particular type of policy. The preliminary report identifies the title to the estate or interest in the described land.

By Sandy Gadow—Your title insurance policy will list certain exceptions that will be excluded from coverage. This is a standard practice, but you should be aware of which items are exempted and therefore not covered. Owner's policies usually contain a list of some of the following standard exceptions.