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 Nebraska, 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 the title company deems the title clear, it will issue a title insurance policy to the buyer. This policy provides coverage for legal defense against claims and pays for any covered financial losses up to the amount of the policy. Title insurance is regulated by the Nebraska Department of Insurance, and companies offering title insurance must comply with state statutes and regulations. It's important to note that title insurance is different from other types of insurance because it covers events that occurred before the policy was issued, rather than after.