In title insurance, who is the contract primarily concerning?

In title insurance, the contract primarily concerns the insured individual. This is because title insurance is designed to protect the policyholder, typically the buyer or lender, from financial loss due to defects in the title of the property. These defects can include issues such as outstanding liens, undisclosed heirs, or errors in public records.

The primary purpose of the policy is to ensure that the insured individual has clear ownership of the property and can freely exercise their rights in regard to that property. Should any claims arise that challenge the validity of the title, it is the insured individual who benefits from the financial protection the policy provides. This protection is tailored specifically for their interests, making them the central figure in the title insurance contract.

While the property itself is certainly relevant to the policy, it is the rights and protections afforded to the insured individual that form the crux of the agreement. The insurance company, while essential to the transaction, serves primarily as the issuer of the policy rather than being the focus of the contract. Brokers facilitate the sale but do not have a direct relationship with the title insurance contract in the context of coverage and protection.