What is a title insurance?

@kimberly 

Title insurance is a type of insurance that provides protection to property owners and lenders against financial loss due to defects in the title to a property. It guarantees that the title to the property is in the hands of the owner and is free from any liens, judgments, or other encumbrances that were not disclosed or discovered during the title search process. Title insurance also covers any legal costs associated with defending the title in the event of a claim. It provides peace of mind to the buyer and lender and ensures a smooth transfer of property ownership.

@kimberly 

Title insurance is a type of insurance that protects property owners and lenders against any potential legal issues or disputes that may arise regarding the ownership of a property. It provides coverage for losses resulting from defects in the title, such as unknown liens, encumbrances, or conflicting ownership claims.

When purchasing a property, a title search is conducted to verify the history of the property's ownership and determine if there are any outstanding issues or defects in the title. However, there is always the possibility of hidden risks or mistakes that may affect the ownership rights.

Title insurance helps mitigate these risks by providing financial protection in case a claim is filed against the property. If a covered claim arises, the insurance company will typically cover the legal expenses to defend the title, as well as reimburse the insured for the financial loss suffered. This can include the costs of resolving title defects, paying off outstanding liens, or even compensating for the loss of the property.

Title insurance is typically paid for by the buyer or the borrower in the case of a mortgage. It is commonly required by lenders in order to protect their investment in the property. While not as well-known as other forms of insurance, title insurance is an important safeguard that provides peace of mind to property owners and lenders, ensuring that their interests are protected.