What Does Title Insurance Protect Me From?

880 WordsFeb 26, 20164 Pages
What Does Title Insurance Protect Me From? People usually think that owning property comes with no problems or complications sometimes along the road. Most of them think that the title, loan, transfer documents and a homeowner insurance (which provide owners with theft, fire and liability coverage) are enough for them to keep their homes and cede it to their children, once they are gone. But imagine for a minute if any financial burden (like a lien) is imposed on your property and at the same time you realize that it was never reported to you before nor does it exist in any official reports of the county where your house is located? What can protect you from such unexpected occurrence? That’s when a title insurance comes in handy. A title insurance is the type of insurance an owner can pay for in order to protect himself against loss or damage resulting from defects that affect the title to his home or again place of business. Owner’s Title Insurance is normally issued in the amount of the real estate purchased. It is purchased for a one-time fee at closing and lasts for as long as you or your heirs have an interest in the property. You should also note that there are two types of Title insurance. One for the real estate owner (that’s you) and one for the mortgage lender. The mortgage lender would most of the time ask you to purchase a title insurance if you are qualified for a mortgage loan so that he, in turn, is protected just in case, for instance, you file for
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