Insurance against losses resulting from the passage of legally invalid title, issued by a title insurance company after a title search by that company has established that legally valid title exists in the seller, who then is able to pass that title to the insured. One kind of policy covers owners, and can carry extended coverage against non-standard defective losses; another covers lenders to the extent of their loan losses resulting from legally invalid title, with the amount of coverage diminishing as loan principal is amortized. Most title insurance policies are similar, and are issued by companies belonging to the American Land Title Association (ALTA).
