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 North Carolina, title insurance is a contractual arrangement that provides protection to a real property buyer against losses or damages due to title defects. This includes any liens, encumbrances, or title defects that were not discovered during the title search process prior to the purchase. Title insurance policies are typically issued after a title company conducts a thorough title search to identify any potential issues with the property's title. The title insurance policy will defend the policyholder in court if a claim is made against the property's title and will cover the insured's financial losses up to the amount of the policy. It's important to note that title insurance is different from other types of insurance in that it covers events that occurred before the policy was issued, rather than after. In North Carolina, title insurance is regulated by the North Carolina Department of Insurance, which sets standards and regulations for title insurance companies to ensure they operate within the state's legal framework.