HDFC ERGO has officially launched a unique title insurance policy in India which is one of the very first products of this type unveiled by private insurers in the country. Title insurance is basically insurance pertaining to the title of any real estate property and is compulsory as per the Real Estate (Regulation and Development) Act 2016 or RERA. This insurance solution offers indemnity for real estate developers and subsequent property owners against any risks and losses linked to property title defects coming out of third party challenges which have not been found prior to the policy’s date of commencement.
This may be due to various reasons such as someone other than the person insured having the title of the property or any other issue which concerns the property inclusive of any forgery or fraud. Legal costs which are incurred also have coverage as part of this title insurance policy. Particular underwriting assessment by paying an extra premium may also help in coverage for any title defects under the policy.
The title insurance solution has been created due to needs arising from RERA which makes it compulsory to buy title insurance for all ongoing and new property developments which are registered under it. This new policy will be of immense benefit for real estate developers, housing finance companies and investors in property. This can be garnered by real estate developers prior to being assigned to the association of members/allottees or association of allottees of housing societies who will be the ultimate beneficiaries as far as this policy is concerned.