10/12/2026
In real estate, we hear the term "Title Insurance" a lot when buying or selling a home.
But what does it mean? Let's take a look at title insurance.
Basically, title insurance works like a standard insurance policy. It protects against future discoveries regarding a property, some title-related and some non-title-related. It is a form of indemnity insurance for a mortgaged property that covers the loss of an interest in a property due to discovered legal defects (existence of a lien, encumbrance, or servitude).
As an insurance product, title insurance doesn’t “fix” problems. It provides insurance coverage for them. In other words, the title insurer has no obligation to do anything until a problem actually arises. When a problem does arise, the insurer can pay damages or actually fix the problem.
It sounds complicated, but it’s simple when you break it down. If you have any further questions regarding Title Insurance give me a call.
