Title insurance insures, defends, indemnifies, and protects the policyholder against claims or losses arising from a defect or claim against the title to real property. Title insurance is usually issued to the buyer of real property by the title company that conducted the title search.
In Hawaii, title insurance is a form of indemnity insurance that protects the policyholder from financial loss related to defects or claims against the title of real property. When a property is bought or refinanced, a title company typically conducts a title search to uncover any issues with the property's title, such as liens, encumbrances, or legal defects. If the title company deems the title insurable, it will issue a title insurance policy to the buyer. This policy provides coverage for legal defense against claims and pays for the insured's loss up to the amount of the policy if a covered title defect is found after the property is purchased. Title insurance is regulated by the Hawaii Insurance Division, which oversees the licensing of title insurance companies and agents, and ensures that they comply with state statutes and regulations. It's important to note that title insurance policies in Hawaii may vary, and it's advisable to consult with an attorney to understand the specific terms and coverage of a title insurance policy.