Unlike general, health or life insurance policies, which require monthly premiums, title insurance only requires a premium to be paid once. The insurer then assumes complete financial responsibility for the defence of any title defects raised against the property to be insured which are not excepted from coverage – in particular, pre-existing defects not uncovered during a title search.
Other types of insurance indemnify against events that cause a loss in the future, which means that an insurer can only control the risk by a careful selection of the insured. In contrast, title insurance provides protection for past events that might cause a loss to the insured as a result of defects in the title of the property.
First Bahamas can control the risk – both for ourselves (by reducing the chance of claims being made) and for you (keeping your premium low) by conducting a thorough and careful examination of the insured as a result of defects in the title of the property to be insured.
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