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 Montana, 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 company will typically conduct a title search to uncover any issues with the property's title, such as liens, encumbrances, or legal claims. If a problem is discovered after the purchase, the title insurance policy will cover the insured for any valid claims made against the property's title, as well as legal fees and costs associated with defending the title. The Montana Code Annotated (MCA) regulates the issuance of title insurance, and the Montana Commissioner of Securities and Insurance oversees the title insurance industry in the state. Title insurance is not mandatory in Montana, but it is commonly required by mortgage lenders to protect their interests in the property.