Which type of title indicates that it is still insured despite known defects in the property?

An insurable title is a type of title that may have certain known defects or issues but is still eligible for an insurance policy. This means that while there may be some questions regarding the full validity or marketability of the title due to these defects, a title insurance company is willing to insure it. The insurance provides protection to the buyer or lender against potential claims or losses that might arise due to the defects.

In practice, this type of title often allows buyers to proceed with a transaction by obtaining insurance that mitigates risks associated with those defects. It can include issues like liens, encroachments, or undisclosed heirs, which could potentially affect ownership rights.

Understanding insurable title is important in real estate transactions as it enables parties to make informed decisions about their investments, even when complications exist. This concept is foundational in ensuring that all parties have a certain level of security despite the presence of known issues with the title.