Title Insurance

If a title insurance policy is provided, it is a contract between you and an insurance company. Under the terms of the policy, the company insures in you a marketable title to the real estate described in the policy. Just as in other insurance, the provisions and coverage will vary but the coverage is somewhat standardized and certain endorsements (some at no cost) can be provided. Most policies cover you against all defects of title whether in or outside the record; however, exceptions to coverage may be contained in the policy, and you and your attorney should check carefully the meaning of these exceptions. The policy provides the maximum amount, which the company will pay. This amount, as well as the amount of the premium, is usually based on the purchase price of the real estate.