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Title insurance

Title insurance is different than most other types of insurance. Where most insurance is the contractual "coverage" where one party indemnifies or guarantees another party against a possible specific type of loss (such as an accident or death) at a future date, title insurance attempts to detect, prevent, and eliminate risks and losses caused by title problems which have their source in past events. Title companies attempt to achieve this by searching public records to develop and document the chain of title and to detect whether there are any American Land Title Association ALTA is a national trade association of title insurers, ALTA promulgates standard forms of title insurance policy jackets for Owner's, Loan and Construction Loan policy forms. ALTA forms are used in most but not all states in the USA. ALTA also promulgates special endorsement forms for the various policies, endorsements amend and typically broaden the coverage given under a basic title insurance policy. Some states such as Texas and New York may require the use of their own forms of title insurance policy jackets and endorsements for properties located in those jursidictions. Title insurance pricing is regulated or fixed by state government in some states including Texas and Florida. Other states such as Illinois do not regulate title insurance premiums but instead rely on the marketplace to do so. Surprisingly lower title premiums are generally found in the unregulated states. Nonetheless a wise consumer should shop for title insurance pricing and explore the issue of title insurance and closing costs with their attorney, real estate broker or lender in addition to the title insurance companies.