What is title insurance?

Title insurance is a type of insurance policy that is intended to protect the holder of a property title. It is designed to protect the insured against any losses due to title defects, liens, or encumbrances that may arise from errors in the public records. Title insurance is usually purchased at the same time as a home or commercial property purchase. In California, title insurance is offered through a title or escrow company, which is a third-party service provider that facilitates the real estate transaction. When a buyer purchases title insurance, the policy typically protects them from any claims made against the title of the property for as long as they own it. Title insurance typically includes two types of coverage which varies by state. The first is owner’s title insurance, which protects the buyer from losses due to title defects, liens, or encumbrances. The second is lender’s title insurance, which protects the lender from any issues that could affect their ability to collect the debt covered by the loan. Title insurance is an important way for buyers to protect themselves and their investments in California. By purchasing a policy, buyers can gain peace of mind that any potential title-related issues that arise will be settled swiftly and any claims resulting from title defects will be covered by their policy.

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What is title insurance?

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