Principles of Risk Management and Insurance, 13th Edition

Title Insurance

Our discussion of property insurance coverages would not be complete without a brief description of title insurance. Title insurance protects the owner of property and/or the lender of money for the purchase of property against any unknown defects in the title to the property under consideration. Defects to a clear title can result from an invalid will, incorrect description of the property, defective probate of a will, undisclosed liens, easements, and numerous other legal defects that occurred sometime in the past. Without a clear title, the owner could lose the property to someone with a superior claim or incur other losses because of an unknown lien, unmarketability of the title, and attorney expenses. Title insurance is designed ...