Title insurance offers financial cover against a number of real estate and asset related risks, including:
- A challenge to legal Title
- Boundary issues
- Sellers' misrepresentation
- Incapacity of prior owners
- Restrictive covenants
- Chancel repair liability
- Rights to light
- Missing searches
The policy also offers coverage for Title to shares in the event of a challenge to legal Title for shares held in a real estate SPV. This includes beneficial ownership and defective documents.
The policy is designed to protect anyone with an interest in the underlying real estate.
The policy period will often survive duration of ownership but can often be assigned to successors in Title.
The premium is paid once the policy is taken out and is dependent on several factors. Premium rates are typically 0.1% – 0.3% of the value of the asset or real estate.
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