The Title Process
What Is Title Insurance?
Protecting property
owners against loss is accomplished by the issuance of a title insurance
policy. If the status of the title to a parcel of real property is
other than as represented by the seller and preliminary title report,
and if the insured suffers a loss as a result of a title defect, the
title insurer will reimburse the insured for that loss up to the face
amount of the policy.
Title insurance differs
significantly from other forms of insurance. While the functions
of most other forms of insurance is risk assumption through the pooling
of risks for losses arising out of unforeseen future events (such as
death or accidents), the primary purpose of title insurance is to
eliminate risks and prevent losses caused by defects in title arising
out of events which have occurred in the past.
Title insurers perform
an extensive search of public records to determine whether there are any
adverse claims to the subject of real estate. Those claims are
either eliminated prior to the issuance of a title policy or their
existence is excepted from coverage. Title company insurance fees
are of public record and available by calling New Century Title Company.
