What does "final policy" signify in title insurance?

The term "final policy" in title insurance signifies a formal title insurance document that is issued after the closing of a real estate transaction. This document serves as confirmation of coverage for the buyer and outlines the terms of the insurance protection. It is essential for providing assurance that the property is free from undisclosed liens, claims, or other issues that could impact ownership rights.

When the final policy is generated, it includes all relevant details about the property, the insured parties, and the coverage provided. This formal document is a key component of the title insurance process, as it solidifies the insurance coverage that protects the buyer from potential future claims against the title.

Other options, like a brief summary of the property's history or an estimate of insurance costs, do not accurately represent the nature of a final policy, which is specifically about confirming coverage after closing has occurred. Similarly, a record of previous claims filed does not relate to the current transaction or the insurance coverage provided to the new owner.