What Does Title Insurance Cover?

Real estate experts encourage all property buyers to purchase title insurance to protect their investments. During most real estate transactions, a title company or an attorney conducts a title search to ensure that there are no errors or debts on the property. However, even after a thorough title search, mistakes or errors can result in serious financial losses for new property owners. Title insurance covers claims that arise after the sales transaction has closed. These claims may come from heirs or creditors who have liens against the property. Other legal issues may result from filing errors.

Title insurance for the property owner and mortgage lender costs a maximum of 1 percent of the purchase price. After the upfront payment, policyholders are covered for costs related to any of the following scenarios. A property can be used as collateral for a loan. In this situation, the lender places a lien on the property. If the original loan holder does not pay off the loan, the balance is taken from the value of the property.


Contractors use liens to obtain payment for renovations or construction work. A failure to pay property taxes may also result in a lien. These liens are connected to the title and are transferred to the new owner when the property is sold. While liens are usually noted in public records, there are times when a lien may not be discovered until after the sales transaction is complete.


Title insurance also protects policyholders from claims on the property made by previously unknown heirs. By law, all heirs have the power to veto the sale of a property. If the seller did not notify the heirs before the sale, they may have the authority to reclaim the property. However, title insurance covers any legal expenses related to the claim fight and financial judgments to the heirs. Errors on deeds or titles can cause difficulties for property buyers. Mistakes may appear on these legal documents due to human error, forgery, or missing papers. Since banks use this information to calculate mortgage amounts, inaccuracies can severely delay the buying process. A common issue is a gap in the chain of title or the historical record of all previous homeowners. This can increase the chance of a property owner encountering unforeseen obstacles or errors.


Additionally, criminals can forge ownership documents for properties they do not own and sell them to unsuspecting buyers. Criminals also may use the property owner’s identity to fraudulently take out loans against the property. In either case, title insurance can protect policyholders from related financial losses. While title insurance covers a broad range of deed- and title-related problems, some conditions are excluded from coverage. For example, financial losses due to regulations that restrict the use of a property, such as zoning laws, are not covered.
Title insurance policies also do not cover legal problems caused by the policyholder. In addition, damage from fire, natural disasters, or accidents is not covered. For these reasons, property buyers are advised to purchase other forms of home insurance alongside title insurance.

Business Development Tips for Title Insurance Companies

Attorney Marc Rovner of East Rockaway, New York, is the general counsel and director of business development at BETA Abstract LLC, a title insurance company headquartered in Oceanside. Marc Rovner has been a senior staff attorney for BETA Abstract for more than two decades. His responsibilities include managing and integrating business development in five offices and three states.

Title insurance companies require the expertise of business development representatives to implement winning strategies that will boost insurance sales.

One of these evergreen strategies is establishing an online presence. In this generation of widespread digitization and internet usage, title insurance companies cannot afford to neglect the importance of having a user-friendly website or mobile app that communicates their values and services to clients. Potential customers are increasingly relying on their internet-enabled devices to do almost everything from shopping for clothes and accessories to renting homes.

Social media and search engine optimization are also vital to improving outreach efforts. Title insurance providers should create educational and fun content around their services and promote that content widely.

How Residential Title Insurance Indemnifies Against Risk

Marc Rovner is an East Rockaway, New York-based attorney who works with BETA Abstract LLC, where he informs legal operations at the title insurance business. Among Marc Rovner’s activities in the East Rockaway area is providing continuing legal education in the area of title insurance and real estate law. Attorney Marc Rovner was also recently awarded the 2019 Martindale-Hubbel Client Champion Award for the fifth consecutive year.

As described by the National Association of Insurance Commissioners, title insurance is a type of indemnity policy that offers mortgage lenders and home buyers with protection in case unknown defects arise in the property title, during or after a real estate transaction closing. This backward focus is unlike standard policies that look toward future events, such as life or home insurance.

Issues protected against by title insurance include things like outstanding liens and unpaid taxes associated with a prior owner of the property. Another area of protection is encumbrances such as fraud, forgery, omissions in deeds, and record mistakes that can present a challenge to the right of ownership for the new owner.

The complexities inherent in property ownership, over periods extending decades, means that nearly every lender requires that any home buyer taking out a mortgage must purchase a title insurance policy. This policy covers an amount equivalent to the loan and indemnifies both the buyer and lender against risk.

The Title Search Process In New York

Attorney Marc Rovner serves as the director of business development and general counsel for the title insurance firm of Beta Abstract LLC, which operates near East Rockaway, New York. In this role, Marc Rovner oversees attorneys at offices in six locations throughout New York, New Jersey, Florida and Connecticut soon!


BETA Abstract provides all types of title-related services, such as title insurance. Insurance is essential to protect property buyers against any issues not discovered in a title search. Title searches are performed before a real estate transfer is finalized. In a search, an attorney or other professionals look through public records to determine if any problems can stop the sale of property.


Title searches can uncover problems such as unpaid liens, additional owners, and fraudulent paperwork. Prospective buyers may also discover land-use restrictions that can impact their plans for the property. Performing a title search before completing the real estate transaction allows buyers to reconsider their offer if they feel it is necessary.

Overall Handy Tips to Execute Claims Prevention in the Insurance Industry

As the director of business development at BETA Abstract, LLC, in Oceanside, attorney Marc Rovner manages and integrates business development activities for the title insurance company in five offices. He has also served as general counsel at the firm since 1998. An attorney from East Rockaway in New York, Marc Rovner has been recognized for his accomplishments in the area of claims prevention.

Claims prevention hinges on the identification of potential claims situations and subsequently preventing them. The practice optimizes operating costs and reduces critical losses; below are some pointers to robust claims prevention execution.

Having a Distinct ManagementSystem: It is important to understand the dynamics of an organization’s workforce. Identifying the management cycle from planning through supervision and review enables higher visibility for likely claims events.


Running Consistent Risk Evaluations: A combination of scientific and statistical approaches could help determine vulnerable spots. The organization can research the possible risk factors and document its findings to draw up actionable plans. Regular reviews would highlight progress and make provisions for changes in operations.

Types of Title Insurance Policies

A native of East Rockaway, New York, Marc Rovner is an experienced attorney and political science graduate from Boston University. He is the general counsel and director of business development at BETA Abstract LLC, in New York, a title insurance company, where he oversees the legal department as well as business development activities. Attorney Marc Rovner also teaches continuing legal education in the areas of real estate, especially title insurance.

Title insurance is a policy used in real estate transactions to protect homebuyers and lenders from risks associated with property title problems. Title risks include forgery, ownership by other persons, lawsuits/judgments against the asset, or wrong signatures on property documents.

However, there are two title insurance classes: a lender’s title insurance/ loan policy and an owner’s title insurance.

Lender’s title insurance protects the lender from property title issues: for instance, if another party makes a legal claim to the asset. It is mostly used in mortgage loan process. This insurance title does not protect equity, but rather safeguards the lender if legal constraints prevent the seller from legally passing title ownership.

An owner’s title insurance policy aims to shield the homebuyer. It is optional, needs to be purchased only once, and its coverage is usually equivalent to the price of the home. The sellers pay for it to safeguard the purchaser’s equity/investment in the property.

Stewart Title Reduces Wire Fraud through Partnership with CertifID

An East Rockaway attorney and resident, Marc Rovner has been the general counsel and director of business development at Beta Abstract, LLC in Oceanside since 1998. For his work as an attorney in the insurance industry, Marc Rovner was given the 2018 Pacesetter Award and the 2018 and 2019 Guarantee Heritage Award by Stewart Title Insurance Company.

In an October 2020 press release, Stewart Title Insurance announced its partnership with CertifID to help reduce the incidence of wire fraud. Incidentally, Stewart Title Insurance is considered the leading provider of underwriting and settlement services for both commercial and residential real estate.

Wire fraud is one of the real estate industry’s priorities because of the number of transactions that are handled remotely. Real estate fraud continues to rise, but CertifID’s patented product has helped businesses safeguard more than $30 billion in wire transfers, protecting lenders, buyers and sellers nationwide, and title companies-including Stewart Title.