Title Insurance = Peace of Mind
Purchasing a home is probably the
single biggest investment you will ever make. Before closing on the house, you'll want to
know that no other individual or entity has a right, lien or claim to the property.
Determining that your rights and
interests to the property are clear is the business of a title insurance company.
For a modest, one-time title insurance
premium, you will receive continuous title insurance protection in an amount equal to the
purchase price of the property or its current market value. This premium typically
includes your "owners" policy as well as the "lenders" policy.
One of the marked advantages of title
insurance is that prior to a policy being issued, the title insurance company completes
extensive research into relevant public records, maps and documents to trace ownership of
the property and determine if anyone other than you has an interest in the property.
Through its research, the title insurance company can usually identify any title problems
that may arise and have these problems cleared-up prior to closing.
Your title insurance owner's policy
will describe the property and outline any recorded limitations on your ownership. It will
also set forth the title insurance company's responsibilities should any claim covered by
the policy terms arise. Typically your title insurance will protect you from loss:
- if someone contests your title in legal action (the title
insurance company will defend the title at no expense to you),
- or if there is a title defect that cannot be eliminated (the
title insurance company will protect you from financial loss up to the amount of the
policy).
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