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 Missouri, title insurance is a form of indemnity insurance that protects the policyholder from financial loss related to defects or claims against the title of a piece 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 claims. If the title company finds any problems, these must be resolved before the transaction can proceed. Once the title is deemed clear, the title company can issue a title insurance policy to the buyer. This policy provides coverage for legal defense against challenges to the title and compensates the insured for any covered losses. In Missouri, title insurance is regulated by the Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP), which sets standards and regulations for the issuance of title insurance policies to ensure the protection of consumers.