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Title Insurance

By
Industry Observer with Paul D. Diaz, EA, MBA BK 602473

Title Insurance in the United States is indemnity insurance against financial loss from defects in real property title and from the invalidity or unenforceability of mortgage liens.

Title insurance is principally a product developed and sold in the United States due to the comparative deficiency of the U.S. land and records laws. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of the insurance liability claim.

The Law Property Assurance and Trust Society was formed in Pennsylvania in 1853. The vast majority of title insurance policies are written on land within the U.S. Typically the real property interests insured are fee simple ownership or a mortgage. However, title insurance can be purchased to insure any interest in real property, including an easement, lease or life estate.

Just as lenders require fire insurance and other insurance coverage to protect their investments, nearly all institutional lenders also require title insurance to protect their interest in the collateral of loans secured by real estate. Some mortgage lenders, especially non-institutional lenders, may not require title insurance.

Comments (2)

John Pusa
Glendale, CA

Paul Diaz this is very  good report about Title Insurance. Happy New Year.

Dec 30, 2017 06:12 PM
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

Most everyone here has Title Insurance, and I always recommend my clients purchase it.  I had an occassion to make a claim several years ago, and so glad I did, as I had to incur $3,000 in repairs due to a fireplace that was not to code when theprevious owner converted it from wood to gas.  

Jan 01, 2018 06:21 AM