There was a man who had two sons, and the younger son said to the father, “Father, give me my share of property that falls to me,” and so the father divided his wealth between his two sons, including the title to his land. The younger son then gathered all that he had and took off to a far away country where he squandered his wealth.
When the younger son had spent everything, he found himself among the swine, wishing he could partake of their food, but no one would give him anything. Finally he said to himself, “How many of my father’s servants have bread enough, and yet I perish with hunger! I will go to my father and I will say to him, ‘Father, I am no longer worthy to be called your son; treat me as one of your hired servants.’”
And so the younger of the two sons arose and returned to the land of his father. But while he was yet at a great distance, his father passed away. The older brother, not being able to locate his younger brother, sold the entirety of the property. So when the younger brother arrived—possibly expecting a ring on his finger and a fatted calf for lunch—he found instead a new homeowner on what was once his father’s land, a portion of which he was to inherit.
This kind of thing can happen. Despite that the new homeowner didn’t know anything about the younger son, this kid could claim a right to the land. If the new homeowner didn’t buy title insurance, then he’s going to have to pay for that legal battle himself to defend his ownership. Title insurance covers the legal cost from unseen risk of previous ownership.