What information is typically included in a title insurance policy?

A title insurance policy primarily provides a guarantee against defects in title. This means that the policy protects the insured party, usually the property owner or lender, from losses resulting from issues that may arise due to defects in the title to the property. These defects could include things like outstanding liens, encumbrances, or claims that may not have been discovered during the initial title search. This safeguard is crucial because it ensures that the insured can defend their ownership claims against any legal challenges related to the title.

While obligations of the buyer, conditions for property zoning, and limitations on property usage can be relevant to property transactions, they are typically not covered by title insurance. These aspects are usually addressed through different forms of legal documentation and agreements, rather than through a title insurance policy itself. Therefore, the coverage provided by the title insurance policy specifically focuses on the integrity and marketability of the title, making the guarantee against defects in title a central feature of such policies.