Your home is the single most important and costly asset you will probably ever own. Problems with the title to your property can limit your use and enjoyment of real estate, as well as bring financial loss. Protection against hazards of title is available through a unique coverage known as title insurance. Unlike other kinds of insurance that focus on possible future events and charge an annual premium, Title Insurance is a one time payment and is a safeguard against loss arising from flaws and defects already existing in the title.
Your mortgage lender also has a great financial interest in the property you’re buying. Just as you do, lenders rely on the Title Insurance Policy to ensure that they won’t be impacted by unforeseen Title problems that could affect them. The Lender’s Policy covers them for the amount of the loan, but decreases and eventually disappears as the loan is paid off. However, this policy does not protect your interest as a Homeowner. You need to purchase a separate Owner’s Title Insurance Policy, so don’t forget to request one! The Owner’s Title Insurance Policy is ordinarily issued in the amount of the purchase price and lasts as long as you – or your heirs – have an interest in the property concerned.
The best Title Search, performed by the most experienced and capable experts, cannot ensure that no Title defect exist. Some of the problems just aren’t revealed in the public records. Your Owner’s title Insurance Policy protects your interest in the property against such unforeseen hazards as: