No, title insurance is not transferable because it serves as a lifetime guarantee to a legal title, unless that title changes. Since you paid in full for the title insurance during closing costs, it remains yours and is not transferable – not to your spouse, significant other or whomever.
If you’re frustrated and upset about this news, it’s important to remember what it is and why it is set up so that title insurance policies cannot be transferred.
Title insurance is a one time purchase that protects your ownership over a property from past liens and new claims. That is why it can also only be purchased during the closing meeting of a home transfer from a title insurance company.
Can I Add My Spouse to an Existing Policy?
Yes, you can add a spouse or a dependent onto an existing title insurance policy. If you add a spouse or an heir onto an existing policy, the policy will not change and your property will remain covered.
Along the same lines, you and your heirs will always be protected from everything listed under that policy — even if you do not inhabit the property at a later point. Also, removing someone from a policy will not affect your coverage at all.
Will My Heirs or Dependents Inherent My Title Insurance Policy?
Title insurance can be inherited along with a property, but it cannot be gifted. If the owner of the property dies, the title insurance will continue as is for any heirs or legal beneficiaries of the property. But title insurance is not automatically transferred with a title if gifted or sold to a family member.
This means the title policy only terminates once the legal title transfers to a new owner.
In What Situations Will I Require New Title Insurance?
One of the only few instances title insurance may need to be tweaked is if you place a quitclaim on a residence for an LLC you do not fully own. In that case, the policy may need to be updated or a new one purchased.
In most cases, title insurance remains pretty inflexible to provide maximum protection under the law against any claims associated with the property.