Title insurance is an insurance policy that you purchase that will cover you during the transfer of title during a sale or purchase of your home or property. It is a policy that will pay for loss of title transfer due to a lien on the property. There are a lot of issues that can cloud title, making it non-transferable. These issues can occur with or without your knowledge. A lien can be placed on your property by mistake and then the transfer of title will not take place until the lien is cleared. There may be a lien on the property due to a violation of the Covenants, Conditions and Restrictions you have in the neighborhood that you live in. Whatever the reason for the cloud, it is always a good idea to have title insurance to cover against any loss due to the inability to transfer title.