In title insurance, what must the insured continue to do for the policy to remain effective?

In title insurance, it is essential for the insured to pay premiums for the policy to remain effective. Title insurance is typically a one-time premium paid at the closing of the real estate transaction, which provides coverage to the property owner and their mortgage lender against any future claims or issues arising from past titles. Although the policy remains in effect for as long as the insured holds an interest in the property, the initial and ongoing coverage is contingent upon the payment of the premium at the time of purchase.

Continuing to pay premiums ensures that the policy remains active and covers the risks associated with potential title disputes or discrepancies that may arise after the purchase. This requirement emphasizes the importance of maintaining the financial aspect of the title insurance policy, as neglecting to meet this obligation could jeopardize the coverage provided.

While maintaining property and filing claims may be relevant to the owner's responsibilities post-purchase, these actions do not affect the active status of the title insurance policy itself in the same way that paying premiums does.