Gap Coverage

Gap coverage refers to a type of title insurance that protects the buyer or lender during the “gap” period between the closing of a real estate transaction and the official recording of the deed or mortgage. This period can create a potential risk where new liens, claims, or defects in the title could arise before the deed or mortgage is officially recorded. Gap coverage ensures that any issues arising during this time do not result in financial loss for the buyer or lender, providing peace of mind until the transaction is fully completed and documented in public records.