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 Arkansas, 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 company will conduct a title search to ensure that the seller has a valid claim to the property and that there are no liens, encumbrances, or other issues with the title. If a valid title is confirmed, the title company can issue a title insurance policy to the buyer. This policy provides coverage for legal defense against claims and pays for any covered financial losses up to the amount of the policy. Title insurance is regulated by the Arkansas Insurance Department, which oversees the licensing of title insurers and agents, and ensures that they comply with state insurance laws and regulations.