Title insurance is a non-casualty product, insuring against future loss based on prior risks. Title professionals search and examine the history of the title to determine its current status and move forward based on known risks. Title insurance emphasizes loss prevention by eliminating or minimizing the risks caused by prior events.

Property casualty insurance is protecting the homeowner against future loss based on future risk. Title insurance indemnifies against future loss based on prior risk.

Title insurance commits the title insurer to defend against adverse claims.

The coverage continues in force from the date of the policy in favor of the Insured, so long as the insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a Purchaser from the Insured. It will continue if the Insured shall have liability by reason of warranties in any transfer or conveyance of title.

Prior to issuing a title insurance policy, a comprehensive search and examination of the title must be performed. This will focus on identifying potential risk from a comprehensive review of the title and evaluating the current status of title with an eye towards risk elimination. To eliminate risk, the agent will cure or remove any clouds on the title or will make an exception for the items that cannot be cured.

A general warranty deed is the best type of deed for buyers. A general warranty deed obligates the seller for actions taken during his or her ownership period plus the actions of predecessors in title.

A quitclaim deed makes no statement as to the grantor’s ownership interest, nor does it contain any warranties. Quitclaim deeds are commonly used to clear clouds on title. They are also used to convey title between family members; to add a new spouse to title held previously by a single person; to divest an ex-spouse of title (pursuant to orders contained in a divorce decree); or to establish a specific form of co-tenancy.