Title Insurance

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Title insurance is indemnity coverage that protects against financial loss from defects in, or liens upon, the title to real estate. Unlike insurance for future events, a title policy protects against problems that already exist in a property's history as of the closing.

In Idaho, title insurance is regulated by the Idaho Department of Insurance under Idaho Code Title 41, Chapter 27. Insurers must file their rate schedules, and rates, escrow fees, and closing-protection terms are subject to the director's supervision.

Title insurance is unique: instead of protecting against something that might happen, it protects against problems already buried in a property's past. Before issuing a policy, the title company searches the public record and resolves what it can; the policy then stands behind the title, paying covered losses and defending the insured if a covered defect later surfaces. An owner's policy protects your equity; a lender's policy protects the bank.

Source: Idaho Code Title 41, Chapter 27

• Owner’s Policy
• Loan Policy
• Endorsement
• Marketable Title
• Title Commitment
• Exception

Reviewed by Kootenai Title & Bonner Title Editorial Team · Last updated June 19, 2026
This definition is educational and not legal advice. See our Editorial Policy.