According to Moses, who is believed to have written Genesis, this verse tells us that Terah lived a long life of 205 years and that he passed away in a place called Haran. This is important because it sets the stage for what happens next in the Bible story with his son, Abram.
Genesis 11:32: And the days of Terah were two hundred and five years: and Terah died in Haran.
Terah is stated to have lived 70 years and begot Abram, Nahor, and Haran, which creates a potential chronological contradiction with the ages and genealogies in Genesis 11:32.
Genesis 11:26: And Terah lived seventy years, and begat Abram, Nahor, and Haran.