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 Ohio, 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 typically conduct a title search to uncover any issues with the property's title, such as liens, encumbrances, or legal claims. If the title search fails to reveal these defects, the title insurance policy will cover the insured for any valid claims made against the property's title, as well as legal fees and costs associated with defending the title. It is common practice for the buyer to purchase a lender's title insurance policy to protect the mortgage lender, and an owner's title insurance policy to protect their interests. The Ohio Department of Insurance regulates the issuance of title insurance and ensures that title insurance companies comply with state statutes and regulations.