What is included in the interests that can be insured?

Leaseholds or leases are indeed included in the interests that can be insured because they represent a legal right to occupy and use a property for a specific period as defined in the lease agreement. Title insurance covers the risk of loss arising from disputes over ownership, and leaseholds can be an important part of a property’s overall value. Insuring leaseholds protects both the lessee and lessor from potential claims against the title that may arise during the lease term, including issues related to the validity of the lease or the lessor's right to lease the property.

In the context of title insurance, leaseholds are treated much like real property interests because they give the lessee certain rights to the property that can be affected by title defects, liens, or other encumbrances. By ensuring leaseholds, title insurers provide assurance that the lessee's rights will be upheld against claims that could arise from previous owners or third parties. This assurance is vital for both parties in a leasing transaction.