What is the nature of a leasehold estate in title insurance?

A leasehold estate represents a tenant's right to occupy and use a property for a specified period under the terms of a lease agreement. This arrangement gives the tenant an insurable interest in the property during the lease term. An insurable interest means that the tenant can benefit from the protections provided by title insurance, which typically covers issues such as title defects that could affect their rights to the property.

In the context of title insurance, having an insurable interest is critical because it allows the tenant to seek coverage that protects their financial investment in the leasehold. It does not equate to ownership of the property itself, as the landlord holds the underlying fee interest. This distinction is vital in understanding how leasehold estates fit into the broader concept of property rights and title insurance coverage.