Real Estate Terms:What is "Title Insurance"?
Title insurance is insurance that protects the lender and the buyer against any losses incurred from
disputes over the title of a property.
In other words: A policy of title insurance is a contract of indemnity between the insurance company and
the owner of an interest in real property. In plain English, this means that in the event that the insured owner
of an interest in the insured property suffers an actual or threatened monetary loss, due to a title defect, lien
or other matter of public record created prior to the effective date of the policy, that is not excluded as an
exception to the policy, the title insurer will defend the insured against a lawsuit attacking the title, or
reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided
by the policy. Typically the immovable property interests insured are fee simple ownership or a mortgage.
However, title insurance can be purchased to insure any interest in immovable property, including an
easement, lease or life estate.
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