What is Title Insurance and Who is Protected?
Title insurance is a safeguard against loss arising from defects that already exist on the title.
Owner’s title insurance is meant to protect your ownership interest in your home. Subject to the terms of your policy, owner’s title insurance protects you against losses incurred due to any title defects that existed prior to the purchase of your home.
Your owner’s title policy offers insurance protection for as long as you own your home.
To the extent of the matters covered in the policy, an owner’s title insurance policy will protect you in the event a legal challenge is made to the ownership of your home.
Owner’s coverage is issued in the amount of the purchase and lasts as long as the purchaser has an interest. Lender’s coverage, is an amount that decreases and eventually disappears as the mortgage is paid.
How Often Do You Pay Premiums?
Premiums are a one-time payment.
How Title Insurance Works
As property changes hands, mistakes and irregularities – often made long before you expressed interest in the property – can place your ownership in dispute. The seller may have…
… avoided disclosure of using the property as collateral for an unpaid loan.
… fraudulently claimed to be the sole owner.
… failed to pay real estate taxes.
Even a simple mistake in the recording of legal documents, improper execution of legal instruments or the reappearance of undisclosed or missing heirs could result in the loss of your property.
To the extent of your coverage under your title insurance policy, if ownership of your property is challenged, the title company will defend your ownership of the property – and assume the legal costs of that defense – for as long as you own the property. What’s more, if challenges to your property’s title prove to be legitimate, the title company will pay for your covered losses.
Take advantage of the title company’s expertise, strength and superior service for your peace of mind and the protection of your property.
Why Do I Need to Purchase a New Lender’s Policy?
The original lender’s title insurance policy protects the lenders interest on the original loan. With the new refinanced loan, the original loan will be paid off, and the new lender will require protection of its interest for the new loan. From the lender’s standpoint, a refinance is no different than any other mortgage loan. In addition, if the loan is sold in the secondary market, investors like FANNIE MAE will require the security of title insurance on the property.
If your refinanced loan is with the same lender as the original loan, your lender may provide additional discounts.
Your home is often the largest financial transaction you’ll ever make – our business is protecting the title to your property from unknown defects. Under the terms of your insurance policy, for a relatively low, one-time premium, you’re protected against covered losses that can cost tens of thousands of dollars. Dollar for dollar, an owner’s title insurance policy is one of the most cost-efficient forms of insurance for homeowners. Best of all, your one-time premium protects you for as long as you own your property.