What does underwriting refer to in title insurance?

Underwriting in title insurance refers to the evaluation of risk and assignment of insurance coverage. This process involves assessing the property title to ensure there are no legal issues, liens, or encumbrances that could affect ownership. Underwriters analyze the title search results, review public records, and determine the insurability of the title. They decide whether to issue a title insurance policy based on this analysis and establish the terms and conditions of coverage if granted.

This evaluation is crucial in providing assurance to buyers and lenders that they will be protected from potential disputes regarding property ownership and title defects. By understanding this process, it becomes clear how important underwriting is in ensuring the overall integrity and reliability of title insurance.