Title Insurance is Designed to Protect You.
Owners
An Owner’s Policy of Title insurance is designed to protect the investment in your home. With a title insurance policy, you as owner, have an indemnity contract that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy. Title insurance protects your property against the past as well as the future. A policyholder is protected against challenges to rightful ownership of real property and challenges that arise from circumstances of past ownerships.
If a claim is made against your insured title, Title Services, Inc. through its underwriter, protects you by: (1) Defending your title, if necessary; and (2) Bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain your possession of your property.
Unlike other forms of insurance, the original premium is the only cost as long as you or your heirs own the property. There are no annual payments to keep your Owner’s Title Insurance Policy in force.
Lenders
A Lender’s Policy of Title Insurance protects the lender’s collateral for all types of loans whether the lender is making multi million dollar loans on commercial shopping centers or $20,000 equity line loans to homeowners. The Lender’s Policy affords similar protections for the lender that are available with the Owner’s Policy of Title Insurance.
Title Insurance FAQ’s
When paying cash for a new home, there are no laws or regulations stating you must purchase owner’s title insurance, although an owner’s policy protects you against the acts of previous owners, mortgages, judgments, etc., filed on public record.
A lender’s policy insures only the bank or mortgage company holding the mortgage on your real property against any title defects. An owner’s policy protects you as the fee owner of the real property.
You should definitely consider purchasing an owner’s title insurance policy when buying a condominium. For a one time premium, an owner’s policy will provide protection against defects in your title for so long as you own the condominium.
The title insurance policy purchased on refinancing covers the new lender. It does not protect you. Your title insurance (assuming you purchased an owner’s policy when you bought your home) remains intact unless you have done something to end the coverage.
Buyer’s title insurance (also known as an owner’s policy) protects you, as the new owner of the real property, from debt or obligations not created by you for the duration of your ownership, whether it be 1 year or 100 years.
The low, one time fee over the lifetime of ownership, is generally worth the investment for peace of mind.
Title insurance is designed to insure your rights to the real property you own. When you own a home or any real property, you want to be sure the real property is free of debts or obligations not created by you. Title insurance is designed to protect you.
Title insurance coverage varies, but key examples include:
- Forgery
- Lack of competency, capacity or legal authority of a party
- Deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner)
- Undisclosed (but recorded) prior mortgage or lien
- Undisclosed (but recorded) easement or use restriction
- Erroneous or inadequate legal descriptions
- Lack of a right of access
- Deed not properly recorded
You should consult with a title representative for specific coverage information.
Title insurance fees vary depending on the value of your real property. The premium is a one time fee and the coverage continues for so long as you have an interest in the real property.
Title insurance is an insurance policy protecting the insured against loss should title to the real estate be different than insured and documented.
