Title insurance is unlike any other kind of insurance coverage. While most insurance policies are protecting against future risks, a title policy provides protection from the consequences of past events. And unlike other types of insurance, you make only one premium payment for a lifetime of coverage.<\/p>\n\n\n\n
Title Insurance Protects Your Right of Ownership<\/strong> Title insurance protects the title \u2013 which is the legal document evidencing a person’s right to or ownership of a property — to a property from legal challenges that might arise before the property was purchased.<\/p>\n\n\n\n Common Title Defects<\/strong><\/p>\n\n\n\n If the title of a property is checked to be \u2018clear\u2019 each time the property transfers from one owner to another, why is title insurance required by lenders and recommended for anyone buying a property? That is because there are common hidden risks that can cause a loss of title or create an encumbrance on title:<\/p>\n\n\n\n Title insurance protects the purchaser of the property from claims arising from any one of those events if the event took place before the property was purchased.<\/p>\n\n\n\n Two Types of Title Insurance Policies<\/strong><\/p>\n\n\n\n Anyone who has a financial interest in the property should have title insurance. On most residential properties, there are two parties who should have coverage: the lender and the homeowner.<\/p>\n\n\n\n The lender needs protection only for the amount of the loan. The homeowner should also have an owner\u2019s policy for the purchase price of the home. Anyone buying a home should discuss this with their attorney. Ask whether or not it makes sense to add a survey endorsement or an inflation rider to the owner\u2019s policy. Be sure to read the title commitment before the policy is issued to find out what restrictions apply.<\/p>\n","protected":false},"excerpt":{"rendered":" Introduction to Title Insurance Title insurance is unlike any other kind of insurance coverage. While most insurance policies are protecting against future risks, a title policy provides protection from the consequences of past events. And unlike other types of insurance, you make only one premium payment for a lifetime of coverage. Title Insurance Protects Your … <\/p>\n
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