Jun 12, 2023

The Importance of Title Insurance When Buying a Home in India

by Godrej Properties Limited



Introduction to Title Insurance

Understanding Title Insurance

Title insurance is a form of indemnity insurance that provides protection against financial losses arising from defects in the property's title. It safeguards the homebuyer's investment by offering coverage for legal costs, losses due to fraudulent transactions, undisclosed encumbrances, and other title-related issues.

Importance of Title Insurance

  1. Protection against Title Defects: Despite extensive due diligence, there may be hidden title defects that can surface even after the property purchase. Title insurance provides coverage against these defects, including forged documents, undisclosed heirs, unpaid liens, and illegal transfers. It ensures that the buyer's ownership rights are protected and helps in avoiding costly legal battles.
  2. Safeguarding Financial Investment: Buying a home is a significant financial investment. Title insurance offers financial protection by reimbursing the homebuyer for losses incurred due to title-related issues. This includes the cost of defending against claims, potential loss of property, and financial damages caused by defects in the title.
  3. Peace of Mind: Purchasing a home is an emotional and life-changing decision. Having title insurance provides peace of mind to homebuyers, knowing that they are protected against potential risks related to the property's title. It allows them to focus on enjoying their new home without worrying about unforeseen legal complications.

The Process of Obtaining Title Insurance

  1. Research and Selection: Homebuyers can research and select an insurance company that offers title insurance in India. It's advisable to choose a reputable insurer with a track record of providing comprehensive coverage and reliable claims settlement.
  2. Title Verification: Before issuing title insurance, the insurance company conducts a thorough title verification process. This includes examining property records, conducting surveys, and assessing the property's legal history to identify any potential risks.
  3. Premium Payment: Once the title verification is complete, the homebuyer pays a onetime premium for the title insurance policy. The premium amount is usually a percentage of the property's value and may vary based on factors such as location, property type, and coverage amount.
  4. Policy Issuance: After receiving the premium payment, the insurance company issues the title insurance policy. The policy document outlines the coverage, exclusions, and terms and conditions of the insurance. It is essential for the homebuyer to review the policy carefully and seek clarifications if needed.


Title insurance plays a vital role in protecting homebuyers from potential risks associated with the property's title. It provides financial coverage and peace of mind by safeguarding the homebuyer's investment against unforeseen title defects, legal disputes, and fraudulent activities. By obtaining title insurance, homebuyers in India can ensure a secure and worry-free homeownership experience.

Frequently Asked Questions

1. Can I transfer title insurance to a new owner if I sell the property?

Ans: Title insurance is usually non-transferable, meaning it cannot be transferred to a new owner if you sell the property.

2. How long does title insurance coverage last?

Ans: Title insurance coverage typically lasts for the duration of the homebuyer's ownership of the property.

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