Wednesday, June 25, 2014

[VIDEO] What is Title Insurance?

Do I Need Title Insurance?

What is Title Insurance?

An insurance policy that is issued by a title company to protect and indemnify the property owner against any financial losses resulting from title defects, once the purchase is complete.

What is the purpose of Title Insurance?

A title insurance policy provides coverage in the event that some person asserts a legal claim against your property. Some common risks that it will insure you against include property liens for unpaid taxes, forged title deed, missing or undisclosed heirs, impersonation of the property's true owner or mistake made while recording legal documents.

What Does Title Insurance Cover?

There are the two main types of title insurance

An owner's title insurance policy - Insures the property owner up to the purchase price paid for property. A new title insurance policy is issued each time there is a change in property ownership. The coverage it provides cannot be transferred or assigned to subsequent owners of the same property.
A lender's title insurance policy - Insures the lender up to the amount of the loan issued. The policy's value decreases over time as the loan is paid off. The lender's title policy insures the lender's valid and enforceable lien in the property. It can be assigned to any other party that owns the loan.

How much is Title Insurance?

There is a one time fee for the insurance premium due at closing of escrow.

Need more information?

Contact us!

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