Title insurance, including premiums and insuring forms, is regulated by the Texas Department of Insurance. Title insurance is insurance against loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. It is meant to protect an owner’s or lender’s financial interest in real property against loss due to title defects, liens or other matters. The issuing title company may defend against a lawsuit attacking the title as it is insured; establish the title as insured or reimburse the insured for the lesser of the actual monetary loss incurred, the value of the land to which the title is insured or the dollar amount of insurance provided by the policy.
Typically the real property interests insured are fee simple ownership or a mortgage. However, title insurance can be purchased to insure any estate in real property, including an easement, lease or life estate. Just as Banks require hazard insurance and other types of insurance coverage to protect their investment, nearly all Banks also require title insurance to protect their interest in the real estate portion of collateral securing loans. Title insurance coverage continues with the lien if properly extended.