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Purchasing a home involves answering many questions,
such as: What can I afford? What is the neighborhood
like? Is the property worth the asking price? What defects
or hassles will I have to take care of once I own the
house?
Just as you would never enter into
a purchase agreement without answering these questions
and having the property inspected, you shouldn't purchase
a home without insuring it properly either. One of the
most important types of insurance you can get is title
insurance.
You can apply for title insurance
online directly to one of our office locations, which
will process your application. |
What is title
insurance?
Title insurance is a type of insurance policy that protects
you against loss should anyone register a claim against
your ownership rights in your property.
What sort of
claims does a title insurance policy cover against?
There are many types of claims that title insurance
will shield you from. These include claims arising from:
- Former owners' undisclosed heirs or people claiming
unrecorded easements or forgotten liens
- Deeds found to be invalid, forged or signed by minors
or persons claiming to be someone they are not
- Judgments or restrictions placed against a previous
owner's rights to the land or certain uses of it
- Clerical errors or oversights in the property's
records
- Back taxes or mortgage payments owed by a previous
owner
What protection
does title insurance provide?
A title insurance policy insures against any losses
suffered due to this sort of legal action, up to the
face amount of the policy, and pays any and all legal
costs incurred defending your rights against the claim.
This can add up to thousands of dollars you would otherwise
have to pay on your own.
What's at stake
if I opt against a policy?
At the worst, a successful claim against your title
could result in the loss of your property, without any
monetary compensation to you. In other words, you could
wind up having to continue paying your mortgage, even
though the property is no longer yours.
My lender had
me buy title insurance for them when I took out my mortgage.
Does their policy cover me, too?
No. The lender's policy protects the lender's investment,
not yours. You will need to purchase an owner's policy
to cover yourself. The cost of the policy should be
minimal, and it's a one-time purchase. A single premium
covers you and your heirs for as long as you own the
property.
I had a title
search done, and it found none of the problems listed
above. Why do I still need title insurance on top of
that?
A title search is recommended for any property purchase.
A thorough look at your property's historical record
can turn up many issues listed above before you take
ownership of the home.
Unfortunately, no search can uncover everything, particularly
errors, omissions or undiscovered issues of fraud. A
title insurance policy provides peace of mind against
these hidden dangers.
Does an attorney's
opinion provide the same safeguards as a title insurance
policy?
No. Like a title search, an attorney's opinion involves
only known documents and cannot account for errors,
omissions or issues related to fraud that have yet to
be discovered. |
