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 Kentucky, title insurance is a form of indemnity insurance that protects the policyholder from financial loss due to defects in the title to real property. When a property is bought or refinanced, a title search is typically conducted by a title company to ensure that the seller has a valid claim to the property and that there are no liens, encumbrances, or defects in the title. If the title search fails to reveal such issues, the title insurance policy will cover the insured for any future claims or legal fees that arise from a title dispute. Title insurance policies in Kentucky are subject to regulation by the Kentucky Department of Insurance, which oversees the licensing of title insurers and agents, and ensures that they comply with state insurance laws and regulations. The cost of title insurance in Kentucky may vary depending on the value of the property and the level of coverage chosen by the buyer.