Can title insurance policies be transferred to new owners?

The correct answer is that title insurance policies are generally non-transferable unless specifically allowed by the policy. Title insurance is designed to protect the insured party, usually the property owner or lender, against issues that may arise related to property ownership, such as liens, defects, or claims. Since title insurance policies are tied to the specific ownership of the property, they typically cannot be transferred to a new owner upon sale or transfer of the property.

When a property is sold, the new owner would usually need to obtain a new title insurance policy to ensure they are covered for any potential issues related to their ownership. This is important because the risks associated with title are unique to each transaction and owner; therefore, the insurance is written specifically for the individual or entity that holds ownership.

Some policies might include specific provisions for transferability, allowing for certain exceptions, but these are not the standard practice. Understanding this aspect is crucial for real estate transactions, as it underscores the necessity of new coverage for new owners to ensure continued protection.