Homeowners must remember that Title Insurance, as opposed to any other type of insurance, protects the policy holder for problems that occurred in the past only.  Essentially, the coverage ends when the homeowner purchases the property and respective title insurance.

Title insurance is meant to protect the new property owner from any past claims on the title but it does not protect the policy holder from any new liens placed on the property after the date of the policy.  For example, if the new homeowner fails to pay a contractor and a lien is placed on the property, title insurance will not cover this incident and the homeowner must remove the lien before the property can be sold.  Once the property is sold and the new owner purchases title insurance, any undiscovered claims or liens on the property, which occurred before his/her tenancy, will be covered by the new policy, and so on.