Title insurance is considered to be a promise made by the insurer to indemnify the insured person against a loss which resulted from a variance as stated in the policy.
A title insurance policy is issued to both property owners and mortgages wherein a policy of title insurance is purchased to safeguard its security.
Title insurance is typically a distinctive kind of interest as it protects the insured from losses emanating from the legal rights of others which is already in existence.
A title insurance policy covers only those defects in the title which exists at the time when the policy was issued. However, there is no coverage for impairments created by the insured once the policy has been incepted. To put it differently, a title insurance policy does not cover a defect which is already known to the insured at the time of the inception of the policy.
Moreover, a title insurance policy excludes any defect which results from the exercise of the State’s power or policy.
| 
