Exactly what does title insurance insure?

Prior to issuing a title insurance policy, a title company will perform a search of land records to determine ownership of the land as well as to record any burdens on the land. For example, a person might claim to have an easement on the property that is being purchased that would allow them a right of access across your property or someone may claim that they have a lien on the property that is securing the repayment of a debt. When the search has been completed, typically a commitment is issued by the title company that outlines the circumstances under which the title company agrees to insure the land.