How long are title insurance policies typically issued for?

The correct answer is that title insurance policies are typically issued for a perpetual period, meaning they remain in effect indefinitely. This is because title insurance protects the policyholder against any defects or issues in the title that may arise after the purchase of the property, including any claims that could be made against it. As long as the insured holds interest in the property, the title insurance provides continued protection. This is significant since real estate transactions often entail long-term ownership, and potential issues with the title can surface even years after the purchase.

Other options may suggest limited durations, which do not capture the essence of how title insurance operates. For instance, suggesting a one-year or five-year policy implies a need for renewal or a lapsing of coverage, which is not how title insurance works. Similarly, while the policy is tied to the mortgage in that it covers the lender’s interest, its coverage lasts as long as the property is owned, not just while any mortgage is outstanding. This makes the concept of a perpetual policy the most accurate description of title insurance coverage.