August 10, 2016
What Is Title Insurance?
By A.J. Sidransky in The Cooperator New York
What You Need to Know
Title insurance is unique among all other forms of insurance. For example, other insurances guard and secure the holder against future loss, such as life insurance against death; health insurance against illness; and car insurance against an accident or theft. However, title insurance secures the property and lien holders against past imperfections in the chain of ownership that could affect the status of your claim to ownership or lien position. Thus, it insures past events, not future ones.
The other component that separates title insurance from other insurances is that has a one-time, single premium payment. Most other forms of insurance require regular payments over time until the termination of the policy.