What is a title insurance policy?

A title insurance policy is a type of insurance policy related to property law in California. The purpose of title insurance is to protect an owner from issues with the title of their property, which is the legal right of ownership. Title insurance also guards against losses from disputes or claims against the title. A title insurance policy is usually purchased when a person purchases a property. The insurance company reviews the title of the property and issues a policy that guarantees the owner the clear title to the property. If a dispute or claim later arises, the insurance company will help the owner defend his or her title and pay out any losses associated with the dispute. Title insurance also covers certain other risks that might affect the title, such as errors in the public record, mistakes in the survey of the property, fraud, forgery or undisclosed heirs to the title. Generally, title insurance is effective until the property is sold, in which case it is usually replaced with a new title insurance policy.

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