Your title company plays an important role in your real estate transaction. There are nearly 5 million real estate closings occurring per year and these transactions are not always without risk. For this reason, title insurance has been used to protect assets for over 125 years.
The process of purchasing a home or investment property can be complex and title insurance is very often an afterthought. Many consumers do not know what title insurance covers. In a nutshell, title insurance protects you from future loss if a covered claim is brought against your property. The belief that there is only a remote possibility that an issue will arise with your title is a common misconception. In fact, one in every four title searches exposes an issue. Common title problems that we find include tax liens, forged signatures, recording errors, and claims by missing heirs and/or ex-spouses.
There are two types of title policies, namely, an Owner’s Policy and a Lender’s Policy. The Owner’s Policy covers you, your property and your equity, while the Loan Policy protects the lender for the amount of the loan. Unlike most insurance policies, title insurance is a one-time fee and it protects you for as long as you and/or your heirs own the home. Your title policy also provides valuable discounts in the event that you decide to refinance the loan on your property.