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 Idaho, title insurance is a form of indemnity insurance that protects the holder from financial loss due to defects in a title to a property. The title insurance policy covers the policyholder for any claims and legal fees that arise out of such defects as long as the policy is in effect. Typically, a title company issues title insurance after conducting a title search to verify the seller's right to transfer ownership and to discover any claims, liens, encumbrances, or other title impediments. The title company then issues a policy that protects the buyer (and/or lender) from any future discoveries that may question the buyer's ownership and that were not found during the title search. Idaho state statutes and regulations govern the issuance of title insurance, and the Idaho Department of Insurance oversees the title insurance companies operating within the state to ensure compliance with these laws.