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 Mississippi, 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 legal defense against challenges to the property's title and compensates for actual monetary loss up to the limit of the policy. Typically, a title company issues title insurance after conducting a title search to ensure there are no liens, encumbrances, or defects in the title. The one-time premium is paid at the closing of the real estate transaction. Mississippi's regulations regarding title insurance are governed by the Mississippi Insurance Department, which sets the standards for issuing policies and licensing of title insurers. The state statutes and federal laws ensure that the title insurance process is conducted in a manner that protects the interests of the policyholder and the integrity of the real estate market.