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 West Virginia, 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 claims and legal fees that arise out of such defects provided they are covered by the policy. When a property is bought or mortgaged, a title company will typically conduct a title search to check for any issues with the property's title such as liens, encumbrances, or defects. If the title is deemed clear, the title company can issue a title insurance policy. The policy can protect both the mortgage lender and the property buyer. The West Virginia Offices of the Insurance Commissioner regulates the insurance industry in the state, including title insurance, and ensures that title insurance companies comply with state statutes and regulations. It's important for policyholders to review their title insurance policy to understand what is covered and any potential exclusions.