Are you wondering what Title Insurance is and if it’s a good idea? Title Insurance is a contract of indemnity, primarily used in the United States, to insure a lender or property owner from defect in title. A title defect may affect the owner’s or lender’s interest in a parcel of property. When it comes to knowing the basics of Title or “Title 101”, we can simplify it into two components.
- It provides legal representation for the insured and the interest of the insured in the property under legal fire.
- If, unfortunately, the insured sustains a covered loss, title insurance steps up to the legal plate and either remedies the issue, reinsures the risk, or if any damages are sustained, the insured receives compensation.
In one sentence, Title Insurance protects the insured against financial loss as a result of title risks covered under the policy in a one-time premium and can remedy a post-closing catastrophe.