In the context of title insurance, what does the term 'insurability' refer to?

The term 'insurability' in the context of title insurance specifically pertains to the assessment of a property’s title for insurance issuance. This process involves evaluating the title for any defects, claims, or legal issues that might affect ownership. In determining insurability, title examiners meticulously review public records, prior title insurance policies, and various legal documents to ensure that the title is clear, free from encumbrances, and can be insured without reservations. If a title is found to be insurable, it means that the title insurance company is willing to issue a policy based on that assessment, indicating confidence in the ownership rights associated with the property. This determination is critical, as it ensures that the buyer is protected against potential future claims or disputes regarding title ownership.