What is Title Insurance?
And why do you need it?
While there are several types of title insurance the two main types that we focus on are Lenders Title Insurance and Owners Title Insurance.
Lenders Title Insurance
Chances are if you are financing your real estate purchase with a mortgage, your lender will likely require that you purchase a Lenders Title Insurance policy that only protects the lender against title defects in the event the lender is forced to take title to the property through foreclosure or a deed in lieu of foreclosure, or in the event an adverse claim rendered its loan non-performing and threatened the lenders ability to foreclose. Generally, a Lenders Title policy offers no protection for the actual homeowner, and the policy will actually decrease in value as the mortgage is paid down.
Owners Title Insurance
Owners Title Insurance protects the property owner against loss should the condition of title to the land be other than as insured. Your home is often one of the biggest investments you’ll ever make. Purchasing Owners Title Insurance is a way to provide peace of mind that your investment is covered against issues that could arise after closing that are undiscoverable from public records, including forgery, fraud, liens not created or agreed to by you, among other things.
An important thing to know about Owners Title Insurance is that it is a one-time cost for the policy that you pay at the time of closing. The coverage the policy provides continues in effect for as long as you have an interest in the covered property, e.g. if you should die, the coverage continues for the benefit of your heirs.
The cost for an Owners policy, when purchased in conjunction with your Lenders policy, is usually quite minimal. We would be happy to provide you with a quote for your Owners policy.