What is a key characteristic of Title Insurance?

Title insurance is indeed characterized as not being prorated. This is an essential aspect of how title insurance operates. Unlike other types of insurance that may require payments to be divided among time frames (such as monthly or annual premiums), title insurance is typically a one-time premium paid at closing. This means that once the title insurance policy is issued, it remains in effect for as long as you or your heirs hold an interest in the property. The policy protects against potential issues with ownership and encumbrances that could arise after the sale is completed.

This one-time premium structure contrasts with options that involve ongoing payments or prorating, which do not apply in this context. Furthermore, there is no provision for refunding title insurance premiums after closing, nor does title insurance require annual renewals like many other types of insurance. Thus, understanding that title insurance is not prorated helps clarify its financial implications for buyers and how it differs from other insurance products.