Title Insurance

AAA

DEFINITION of 'Title Insurance'

Insurance that covers the loss of an interest in a property due to legal defects and that is required if the property is under mortgage. Most title insurance is lender's title insurance, which is paid for by the borrower but protects only the lender.

Owner's title insurance is a separate policy; in some areas it is paid for by the seller to protect the buyer's equity in the property.

INVESTOPEDIA EXPLAINS 'Title Insurance'

While a lender's policy only protects the lender against loss, the fact that the policy was issued reflects that a title search has taken place, which can give some assurance to the buyer. However, title searches are not 100% infallible, hence the need for insurance.

RELATED TERMS
  1. Chain Of Title

    The official record of ownership of a property or asset. The ...
  2. Quiet Title

    A lawsuit filed to establish ownership of real estate when ownership ...
  3. Title

    The right to the ownership and possession of any item that may ...
  4. Title Search

    An examination of public records to determine and confirm a property's ...
  5. Closing Costs

    The expenses, over and above the price of the property that buyers ...
  6. Recording Fee

    The fee charged by a government agency for registering or recording ...
Related Articles
  1. Professionals

    What do real estate attorneys do?

    Understand the role of a real estate attorney to help you decide if you would benefit from the expertise of this type of professional.
  2. Credit & Loans

    4 Steps To Attaining A Mortgage

    It starts with knowing your choices as well as your price range. We show you how to get there.
  3. Insurance

    10 Hurdles To Closing On A New Home

    It's the biggest purchase of your life - find out what can go wrong before you even close the deal.
  4. Home & Auto

    How An Insurance Company Determines Your Premiums

    Find out how insurers use credit history to build an insurance score and how it could affect your bottom line.
  5. Home & Auto

    5 Tips For Recession House Hunters

    Follow these five tips to get a leg up on rival bargain hunters.
  6. Personal Finance

    Understanding Your Mortgage

    We walk through the steps needed to secure the best loan to finance the purchase of your home.
  7. Insurance

    How do I determine the face value of a life insurance policy?

    Read about how to determined the face value for any life insurance policy, and see what circumstances can trigger a change in face value.
  8. Options & Futures

    Is short selling a form of insurance?

    Explore short selling and put options. Learn how put options may be used as insurance to protect positions, and costs associated with using this method.
  9. Professionals

    What's the average salary of an actuary?

    Get insight into the intriguing career of risk analysis and forecasting. How much do actuaries make, and how is this field expected to fare in the coming years?
  10. Insurance

    How to Use a Waiver of Subrogation

    A waiver of subrogation means that a party to a contract waives the right to allow someone (usually an insurance company) to sue the other party to the contract in case of a loss.

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  6. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
Trading Center