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 Indiana, title insurance is a contractual arrangement that protects real estate buyers and lenders from financial loss due to defects in a property's title. The title insurance policy ensures that the policyholder has a clear title to the property, free from liens, encumbrances, or legal defects. It is typically issued after a title company conducts a thorough search of public records to verify the property's legal ownership history. If any issues are discovered after the purchase, the title insurance company may be responsible for legal defense and financial indemnification up to the coverage limit. Indiana's Department of Insurance regulates the title insurance industry, ensuring that title insurers comply with state statutes and regulations. The state also has specific requirements for licensing of title insurance agents and companies, and it mandates certain consumer protections, such as the provision of a title insurance policy jacket or a preliminary report to the buyer.