When you purchase a home or an apartment, you are really purchasing the right to occupy and use the space allotted in the agreement. What if the land or property where the building is located is not protected from rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss?
This is where Title insurance protects you!
Other home insurance that target fire, theft, flood loss, mainly protect your home against possible future events and charge an annual premium. Title insurance protects against loss from hazards and defects that already exist in the title and is purchased with a one-time premium.
At present, there are two basic kinds of title insurance existent in the market today:
- Lender protection,
- Owner's coverage.
The owner's coverage lasts as long as the policyholder or his heirs have an interest in the insured property.
Premiums are usually one time or sometimes an additional premium is incurred for separate lender coverage. Primarily title insurance emphasizes risk elimination before ensuring you safety against title claim and loss.
An examination of public land records is conducted to determine whether the property is insurable and then all possible "material objections" such those listed below are reported.
- Deeds that are improperly worded or misspelled
- Outstanding mortgages
- Money Judgments
- legal action against the property
- Erroneous notary acknowledgement
- Open Taxes
- Tax Sales
- Tax Liens
Such title problems can then be corrected. However, what about hidden title hazards such as signature forgeries, unknown heirs, fabricated power of attorneys and public record errors?
This is where the benefits of the Title Insurance come into play. Besides known hazards that are corrected, you get protection from hidden hazards as well. For a one time premium, the title insurer will defend against an attack on said title and will either perfect the title or pay legitimate title claims.
Protecting your home is a basic necessity and when pitfalls can be avoided, why not?
Title insurance provides coverage to the buyer against any loss arising out of possible unclear titles to the property that is purchased. For a one-time premium, the insurer agrees to pay a specific amount for any possible loss caused by defects of title on real estate in which the insured has an interest as a purchaser, a mortgagee, or otherwise.
Purchasing a Title Insurance Policy helps you sleep better at night, safe and secure in the knowledge that your financial investment is well protected against every kind of hidden risk. |
