A home is the single largest investment most of us will make in our lifetime. Buying with confidence involves a lot of elements, but most especially you have to make sure to claim ownership of the home’s title insurance. This will protect you and your property from legal and financial claims. To get you started, here are answers to some of the most common questions we hear.
What is a title and a title search.
A title is your ownership right to your property. A title search is a standard part of the home buying process that is conducted to uncover issues that could prevent your right to the property. Your closing agent reviews public records to see if there are problems or defects that could cause you legal issues.
What is title insurance.
Title insurance is a policy that protects your investment and your property rights. There are two types of title insurance:
An owner’s title insurance policy protects your property rights for as long as you own your home.
A lender’s title insurance policy is required by the lender and protects only the lender’s financial interests. The buyer typically pays for this policy, but may vary depending on where you live.
What is homeowners insurance.
Homeowner’s insurance protects against fire, flood, theft, or any other type of property damage and loss. It will also protect homeowners against losses from problems that arose before you bought the property, but were not known at the time of purchase. Homeowner’s insurance doesn’t guarantee you’ll be able to sell your property or borrow money on it.
What kinds of problems can title insurance protect you from.
Title insurance protects you against loss due to title defects, liens, or other legal issues. It also protects you from outside ownership claims of your property and shields you against losses from issues that arose prior to you buying the property.
Purchasing owner’s title insurance is the best way to protect your property from future legal claims.
Why should I purchase owner’s title insurance.
The one-time payment for owner’s title insurance is low relative to the value of your home. The typical owner’s title insurance policy costs around 0.5% of the home’s purchase price.
What does owner’s title insurance cost.
Your owner’s title insurance policy covers you for as long as you own your property. No renewal necessary!
How long am I covered.
You sign the legal documents and receive the keys to your home.