Title Insurance

An owner’s policy of title insurance insures that as of the date of the policy the owner owns the property free of any claim, lien or encumbrance except those noted on the policy.  If this information is incorrect and a claim against ownership is made, the title insurance company pays the cost of attorney’s fees to defend the owner against the claim. 

If the claim is valid, the title company will either pay the claim up to the policy amount or undertake to correct the defect in title at their expense.  Note that lenders will require the property owner to purchase a “loan policy” protecting the lender’s interest in the property. 

In Connecticut, attorneys act as agents for title insurance companies, and arrange to issue the title insurance policies for their clients.