Title Insurance

Title insurance is an indemnity policy covering financial loss from defects in title that existed but were undiscovered at the time of purchase.

Mandated for promoters under RERA but still thinly available in India, it differs from ordinary insurance in covering past events rather than future ones. It does not replace diligence - insurers price and underwrite on the strength of a title search, and defects already known are excluded from cover.

What it does not prove

A policy does not make title good; it converts a title risk into a claim against an insurer, subject to exclusions.