As opposed to other types of insurance which are designed to protect a policy holder against loss from something which has not yet happened, such as fire, flood or auto accident, a title insurance protects the policy holder from an occurrence that has happened, such as a forged deed which may have occurred some time during the life of the property in question.  Typically a title insurance will protect the policy holder against such title defects (“hidden risks”) as forged deeds, undisclosed heirs, mistaken legal interpretation of wills, misfiled documents, confusion arising from similar names, incorrectly given marital status or mental incompetence.  The title company will warrant making good a loss arising through such defects or any liens or encumbrances on the title.  The title insurance will agree to defend the policy holder’s title in court against any lawsuits arising from defects covered in the policy.