Title Insurance Policy
An insurance policy protecting against losses from defects in title, liens, or encumbrances not disclosed in the preliminary title report.
When Its Used
Issued at closing after recording the deed. Lender's policy is required for financed purchases; owner's policy is optional but recommended.
Key Sections
Coverage amount; Covered risks; Exclusions from coverage; Schedule A (insured interest); Schedule B (exceptions); Claims procedures
Common Mistakes
Buyer declining owner's policy; Not understanding coverage limits; Confusing lender's and owner's policies; Not reviewing Schedule B exceptions
Pro Tip
Always recommend owner's title insurance. Explain that lender's policy only protects the lender, not the buyer. Review Schedule B exceptions carefully.
