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Philip Said:

What is a title insurance policy?

We Answered:

Title insurance, is what the buyer purchases, so that if later down the line, his legal ownership comes into question (because maybe the house was foreclosed on, and the seller didn't have the RIGHT to sell the house, for example), then the title insurance pays.

Andre Said:

What is title insurance?

We Answered:

Title insurance protects you as well as the lender from some ones long lost heir stating they have rights to your land and or home. It is required and it is just a 1 time fee based on the loan size. Your owners policy is about a $25 fee.

Samantha Said:

Does anyone know the procedure for submitting property title insurance claims?

We Answered:

Boston, and the rest of Massachusetts is kind of a funny third world country with their rules, regulations, requirements and procedures (yeah I grew up there).

Anyway, where I'm from NOW, water and back taxes are not something that is cleared up by a title insurance policy. Until recently, if you purchased property in Columbus OH, and the prior owner had an outstanding water bill, you were on the hook until it was paid. You didn't have to pay it, they just wouldn't turn on your water. City council changed that rule a few years ago.
Payment of back taxes should have been outlined in your real estate purchase agreement. Since $2000 is about 15 minutes worth of real estate tax in Boston, I'm guessing you've had to pay up from the time the last tax payment was made by the prior owner. Any Realtor with dry ink on her license knows to put that in the contract; since I don't hear you complaining about a Realtor, I'm guessing there wasn't one.

So, unless the water & tax people but a lein on your property, there is no title issue. Don't like the water situation? gripe to your councilmen; unhappy with the tax deal? blame the person who wrote your purchase agreement. And enjoy the new house.