Title Insurance
A one time premium policy protecting owner or lender against defects in property title.
Overview
Covered defects include unknown heirs, forged deeds, liens, recording errors, and boundary disputes. Unlike other insurance it covers the past, insuring that ownership is as stated, rather than future events. The lender policy required by mortgage companies protects only the loan balance, so owners buy a separate owner policy that lasts as long as they or their heirs hold title. Claims are rare and most of the premium funds title search and underwriting before issue, so loss ratios run a few percent compared to 70 plus in property lines. Premiums average roughly 0.5 to 1 percent of price in the United States, vary by state regulation, and reissue credits can discount repeat searches.
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