Title Insurance

policy that protects the buyer/owner of real property from successful claims of ownership interest to the property. The coverage usually is supplemental to a mortgagee's title insurance policy, and the premium is customarily paid by the buyer. May also be referred to as the owner's title policy.

Example: When Bob bought his home, the seller had to buy a title insurance policy to satisfy the lender. To protect his interest in case of a legitimate claim on the title, Bob purchased a mortgagor's title insurance policy.