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 Wisconsin, 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 insurance policy is typically issued after a title company has conducted a thorough search of the public records to verify the seller's right to transfer ownership and to discover any claims, defects, or other rights or burdens on the property. The title insurance policy provides coverage for legal defense against claims and pays for the insured's losses up to the amount of the policy. Wisconsin's regulations on title insurance ensure that title insurers are properly licensed and that they comply with state insurance laws. The Wisconsin Office of the Commissioner of Insurance (OCI) oversees the regulation of title insurance, including the licensing of title insurance companies and agents, and the approval of policy forms and premium rates.