WHY YOU NEED TITLE INSURANCE

As a home owner, it is crucial to have title insurance when selling your property. Title insurance provides protection against any defects or issues that may arise with the property's ownership records. It ensures that you have clear ownership of the property being sold and protects you from any financial loss resulting from title defects, such as liens or claims against the property. Having title insurance also provides peace of mind for both the seller and buyer, as any potential issues can be identified and resolved before the sale is finalized.

Who does a title policy protect?

Two types of insurance policies are available in real estate transactions. First is the Loan policy which specifically covers the lender's interest on the loan amount. Second is the Owner's policy which safeguards the owner's investment on the property. The Loan policy usually lasts until the mortgage is fully repaid, while the Owner’s policy remains in effect for the entire ownership of the property. These policies help mitigate financial losses in case of title disputes or other defects that might arise during the transaction. Having both policies gives a comprehensive insurance coverage to both the lender and owner.

How does it help me?

In the event of a claim being filed against your property, your title company will immediately take action to address the situation. They will work on your behalf to resolve any issues related to the claim, ensuring that your property remains protected and secure. This may involve conducting an investigation into the claim, consulting with legal professionals, and taking any necessary steps to safeguard your property rights. With the support of your title company, you can rest assured that your property ownership is protected and that any claims made against your property will be resolved in a timely and efficient manner.

How much does title insurance cost?

Title insurance prices vary depending on the location and characteristics of the property, as well as the type of insurance purchased. Different types of policies may offer different levels of protection and come with varying costs. Homebuyers typically purchase lender's and owner's policies to cover potential title defects that could jeopardize their ownership of the property.

The policy of the lender is dependent on the expenses incurred in providing the loan, while the owner's policy is influenced by the assessed value of the property being purchased. While the lender's policy safeguards the creditor in the event of a default or other related issues, the owner's policy is designed to protect the owner from unforeseen events, such as title defects and liens. The two policies are separate and should be obtained to fully protect the interests of both the creditor and the homeowner.

When do I have to pay for it?

There’s a one-time fee that’s paid at closing during the settlement process.

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