What is a title insurance policy?

A title insurance policy is a type of insurance policy that helps protect a homeowner or other real estate purchaser from any claims resulting from legal issues surrounding the title of a property. Title insurance is required when purchasing a home in Hawaii. The policy can cover things such as undisclosed creditors, missed tax liens, and even forgery. When a title insurance policy is in place, it guarantees that all of the paperwork for the property transaction is accurate and up to date. The title insurance company will investigate and ensure that all past owners have properly transferred the title to the new owner free and clear of any legal challenges or unresolved disputes. Additionally, the title insurance company will also review all of the public records associated with the property to ensure that the new owner has an accurate record. If any issues are discovered, the title insurance company will handle the legal proceedings on behalf of the homeowner or other real estate purchaser to ensure that the title is clear of any issues. This is done even if the issue is discovered after closing on the property. Title insurance policies usually last as long as the new owner owns the property, and will cover any legal claims against the title regardless of when the issue arises. Title insurance policies can help to provide peace of mind to homeowners and protect them from legal issues that could arise in the future.

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