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Tile insurance is a way to protect yourself from financial loss in the event that problems develop regarding the rights of ownership of your property. There may be hidden defects that even a detail and thorough title search will not reveal. In addition to protecting you against financial loss, title insurance pays the cost of defending against any covered claim.
A lenders policy will insure the lender that has a valid lien on the property. Most lenders require this type of insurance and will require the borrower to pay for it, in most cases.
Standard Owners Policy
The property owner does not benefit from a lender's policy if the title loss occurs. For a slight additional premium, the property owner can obtain an owner's policy to protect the owner's equity from an insured title loss.
Lender's title policies remain effective as long as the mortgage is secured by the property. However, owners' title policies insure the owner's equity, up the policy limit, as long as the owners or heirs own the property.
When an owners' title policy is purchased simultaneously with the lender's policy at the time of closing or within 30 days of the dat of closing, the cost is minimal.
Increased Owner's Coverage
Expand title coverage for owners of the one-to-four family residences, including condominiums, provide more coverage automatically than any previous policy.
There are nine (9) important new coverage's automatically than any previous policy. Some of these coverage's include post policy forgery which occur in the future, encroachments on the insured property which occur after property, violations of restrictions that occur before the home owner bought the property and more. It provides protection in situations that the home owner and real estate agents could never have been foreseen.
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