Interesting facts you should know about Title Insurance

1. What is Title Insurance?

Title Insurance is an insurance policy to protect you from financial loss in the event that there is a problem regarding your rights of ownership in your property. There could be hidden title defects that even the most thorough title search will not reveal. In addition to protection from financial loss, title insurance pays the cost of defending the title of your property if ever challenged. 

2. What does an owner’s policy cover?

An owner’s policy protects your interest in the property against such hidden hazards as:
Mistakes in recording of legal documents
Forged deeds, releases, or wills
Undisclosed or missing heirs, including spouses
Deeds by persons of unsound mind
Deeds by minors
Deeds executed under an invalid or expired power of attorney
Liens for unpaid taxes
Fraud

3.  What is a title search?

It’s a detailed examination of all available public records on a property to verifty the seller’s right to transfer ownership and to uncover any potential challenges we might see.

4.  How long does title insurance coverage last?

A lender’s policy last until the mortgage is paid in full. An owner’s policy remains in force as long as you or your heirs have an interest in the property. If challenges to title arise after the property has passed to your heirs, the title insurance company would defend the title for them just as it would for you.

5.  How much does title insurance cost?

Title insurance is a one time premium that you pay at closing and is typically less expensive that your annual auto insurance premium. The coverage continues for as long as you own the property without any additional premium costs.

6.  Why do I need title insurance?

There are two types of title insurance policies: a lender’s policy and an owner’s policy. The lender’s policy is required for a mortgage, financially covers the amount of the loan, and provides protection to the lender. An owner’s policy protects the landowner against any title loss, which insures the value of the property. With title insurance, a claim is made against the title, the underwriter must pay any and all costs associated with defending the claim, and if unsuccessful in that defense, reimburse the landowner for any reduction in the value of the land.

7. Why is transferring the title to real estate different from transferring the title to other items, such as a car?

Transferring a real estate title can be complicated, because land is permanent and the usage of land and the rights to use if can change over the years.

8.  Is title insurance as important as homeowner’s insurance?

Homeowner’s insurance typically provides protection against theft or damage. If a fire destroys your home, you can rebuild and buy new possessions. If the title to the land fails, your could lose the right to inhabit your home as well as the land it occupies. 

9.  Where can I get title insurance?

You can obtain title insurance from any licensed title insurance agent, such as TitlePoint!