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 Vermont, 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 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 insurance policy is purchased during the real estate transaction process, and the title company that conducts the title search will issue the policy. This ensures that the buyer has a clear title to the property, free from any undisclosed liens, encumbrances, or defects. Vermont state statutes and regulations govern the issuance of title insurance, and the Vermont Department of Financial Regulation oversees the licensing and regulation of title insurance companies operating within the state.