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 Wyoming, 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 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 company issues title insurance after conducting a title search to verify the seller's right to transfer ownership and to discover any claims, liens, encumbrances, or title defects. This ensures that the buyer receives a 'clean' title to the property. The one-time premium for title insurance is usually paid at closing. Wyoming state statutes and regulations govern the licensing and practices of title insurance companies, and the Wyoming Department of Insurance oversees the compliance of these entities with state laws.