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 Kansas, 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 Kansas Title Insurance Act regulates the issuance of title insurance, and it requires that a title search be conducted before a policy is issued. This search is meant to identify any liens, encumbrances, or defects in the title that could affect the buyer's ownership rights. The title insurance policy provides coverage for legal defense against claims and pays for the loss of the insured's interest in the property up to the amount of the policy if a covered title defect is found. Title insurance is typically purchased by the buyer, but it may also be required by the lender to protect their interest in the property. In Kansas, title insurance is provided by licensed title insurance companies, and the rates for title insurance may be regulated by the state.