How does title insurance differ from other types of insurance in terms of payments?

Title insurance is distinct from other types of insurance primarily due to its payment structure, which involves a one-time premium paid at the closing of a real estate transaction. This payment grants coverage that protects the owner and lender against future claims or defects in the title that may arise.

Unlike typical insurance policies, such as health, auto, or homeowners' insurance, which often require ongoing payments such as monthly or annual premiums to maintain coverage, title insurance operates on a one-time payment system. Once this premium is paid, the policy remains in effect for as long as the insured holds an interest in the property, thereby providing peace of mind without the looming obligation of recurring payments.

This unique feature makes title insurance financially advantageous to property owners and lenders, as they do not need to worry about renewing their coverage annually or making monthly payments, allowing them to focus more on other aspects of property ownership and investment.