Home title insurance
Land and home titles are known to be one of the most difficult and costly legal disputes to settle, which is why you want to avoid them at all cost. Although there several ways of ensuring that you don’t have to go through that painful process, the best one would still be to get a Title Insurance.
What Is Title Insurance?
Getting a Title Insurance is one way protecting your property from any problems that may come with regards to titles. There are cases where homeowners and lenders are faced with issues regarding the property’s title – from liens and encumbrances and title defects and everything else in between.
Title Insurances are also different from other types of insurance in terms of what they cover. For instance, a car insurance covers those accidents or damages that the car may incur in the future like in collisions, whereas a Title Insurance protects your property from any past events that transpired in the property. Other insurances are also paid in monthly, quarterly, bi-annual or annual premiums, whereas Title Insurances are paid with a one-time premium.
Title Insurance Coverage
On a more specific note, Title Insurance covers any claims that other people may have on your property like another person claiming to own your property. Other title defects like encroachments and easements are also covered.
Title Insurances are offered in different types, with the differences mainly in the coverage. For example, the most basic Title Insurance covers only issues like forgery and impersonation, undisclosed but recorded prior mortgage, improper recordings of deeds, erroneous legal descriptions and lack of a right of access. The more advanced types (also the most expensive) will cover much more than these, including off the record matters like claims or tax liens, incorrect surveys, post policy forgery, and forced removal of improvements to name a few.
Do note that one Title Insurance can also vary from another. Policies can be different depending on the company giving you the insurance, so you may want to ask around and make comparisons before choosing which one to get. When possible, do go for the more extensive Title Insurance as they provide you with more protection from the most terrifying defects and legal issues that property titles are prone to.