Title Insurance -
How Does Title Insurance Protect Against Claims?
If a claim is made against the owner or lender, the title insurance company protects the insured by:
(1)
Defending the title, in court if necessary, at no cost to owner or lender, and
(2) Bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain possession of the property.
Each policy is a contract of “indemnity.” It agrees to assume the responsibility for legal defense of title for any defect covered under the policy’s terms and to reimburse for actual financial losses up to the policy limits.
