Title Insurance
Frequently Asked Questions (FAQs)
How does title insurance protect me?
In spite of all the expertise and dedication that go into a title search and examination, hidden hazards can emerge after closing, resulting in unpleasant and costly surprises. Some examples of hazards include:
- Forged signature on deed, which would mean no transfer of ownership to you
- An unknown heir of a previous owner who is claiming ownership to the property
- Instruments executed under an expired or a fabricated power of attorney
- Mistakes in public record
Why do I need title insurance?
Without title insurance, it's possible that someone could claim title to your property after closing. It's also possible that someone holds an easement on your land to access it. Someone else may say they have a lien filed against your property due to a previous debt owed to them.
What will it do for me?
Title insurance offers financial protection against these and other covered title hazards. The title insurer will pay for defending against an attack on title as insured, and will either perfect the title or pay valid claims- all for a one-time charge at closing.
Is there only one type of policy?
There are two basic kinds of title insurance that benefit you in two ways:
- An owner's policy is for you, the homeowner, and it insures you for as long as you own that particular property.
- A lender's policy insures the lender's interest in the home against claims that others might have on that particular property.
How do I pay for my title insurance?
You will make a one-time payment when you close on your property.
Other types of insurance that protect your home focus on possible future events and charge an annual premium. On the other hand, title insurance protects against loss from hazards and defects that already exist in the title and is purchased with a one-time premium.
What does my premium really pay for?
An important part of title insurance is its emphasis on risk elimination before insuring. This gives you, as the policyholder, the best possible chance for avoiding title claim and loss. Title insuring begins with a search of public land records affecting the real estate concerned. An examination is conducted by the title company on behalf of its underwriter to determine whether the property is insurable. The examination of evidence from a search is intended to fully report all “material objections” to the title. Frequently, documents that don't clearly transfer title are found in the “chain,” or history that is assembled from the records in a search. Through the search and the examination, title problems are disclosed so they can be corrected whenever possible.