§ 104 Title Insurance Coverage

Insurance Code·California

AI SummaryVerified

This law says title insurance protects people who own property or have a claim on it from losing money because of ownership problems.

Key Takeaways

•Title insurance covers loss from hidden liens or mistakes in the ownership record.
•It also helps if a lien that appears on the property turns out to be invalid or can’t be enforced.
•If a title search missed something important, the insurance will pay for the resulting damage.

Example

A family buys a house, but later discovers an old mortgage that was never paid off and shows up on the title.

Because they have title insurance, the insurance company will pay for the loss caused by that hidden mortgage.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 104 Title Insurance Coverage

Title insurance means insuring, guaranteeing or indemnifying owners of real or personal property or the holders of liens or encumbrances thereon or others interested therein against loss or damage suffered by reason of: (a) Liens or encumbrances on, or defects in the title to said property; (b) Invalidity or unenforceability of any liens or encumbrances thereon; or (c) Incorrectness of searches relating to the title to real or personal property. (Repealed and added by Stats. 1973, Ch. 1130.)

Last verified: January 11, 2026

Key Terms

title insurance liens or encumbrances defects in the title invalidity or unenforceability incorrectness of searches

References

Official text at leginfo.legislature.ca.gov
California Legislature. Insurance Code. Section 104.

Key Takeaways

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Key Terms

Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References