What does a plain language title insurance policy protect?

A plain language title insurance policy primarily protects owners of residential property. This type of policy is designed to simplify the legal jargon commonly found in traditional title insurance policies, making it easier for homeowners to understand their coverage. The policy generally provides assurance that the title to the property is clear, meaning there are no outstanding liens, claims, or other encumbrances that could affect ownership.

Homeowners can rely on this protection when making significant investments in their properties, as it safeguards their ownership rights against potential disputes that may arise after the purchase. While lenders may also benefit from title insurance in some situations, the focus of a plain language title insurance policy is distinctly on the needs and protections afforded to residential property owners.