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Title insurance is different from other types of insurance in that it protects you, the
insured, from a loss that may occur from matters or faults from the past. Other types
of insurance such as auto, life or health cover you against losses that may occur in
the future. Title insurance does not protect against any future faults.
Another difference is that you pay a one-time premium. A title insurance policy will
protect you from risks or undiscovered interests.
There are two principal forms of title insurance: What is a Lender's Policy? A lender's policy protects the mortgage holder. If there is a fault in title that results in a loss, the mortgage holder will be paid back. What is a Homeowner's Policy? A homeowner's policy protects you, the purchaser, against a loss that may occur from a fault in your ownership or interest you have in the property. Protect the equity in your new home with a title policy. What does a Homeowner's Policy provide?
·Protection from financial loss due to demands that may be charged against the
title to your home, up to the cost of the title policy.
What "hidden risks" are protected under a Title Policy?
·False impersonation of the true owner of the property by the seller or other persons
previously in title
How long does my coverage last? Once purchased, title insurance remains in effect for as long as you own your property. Title insurance adds security and peace of mind to homeownership. How do I obtain title insurance and what does it cost? Let the title company, attorney or agent handling the closing of your property know that you want to purchase an Owner's Title Insurance Policy. When choosing a title insurer, you should look for a company with experience, as well as the financial strength to protect you. In most states, the insurance commission or some other governmental body controls the premiums for title insurance policies. You only pay the premium once. The cost depends upon the purchase price of the property, and your policy amount must be equal to the purchase price.
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