Property buyers know that a title search will be necessary in order to ensure they receive a marketable title upon closing. There are however some issues with the title that cannot be found even by the most thorough title search.
Title insurance policies protect you against any loss that could result from any of these title defects, up to the policy value. You can also get an estimate of your title insurance from experts at clearskiestitle.com/estimate.
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The lender is protected by a title insurance policy called "Lender". It covers the loan amount. A title insurance policy covering a lender will protect it from losses, take over the note on the property, and demand payment of the remaining balance.
An "Owners" title policy protects the owner's real property equity. This is the difference between the Lenders Title policy amount and any liens on the property. These exceptions are not included in the policy.
An Owner's policy costs less when purchased at the same time as the Lender's title policies. This is because the title insurance company offers a "simultaneous issues rate."
The homebuyer must pay a one-time premium to purchase Owners Title Insurance. This insurance lasts for as long as the property is owned by the purchaser or his/her heirs. A reissue of the lender's title insurance is required when refinancing a mortgage.
While a policy of title insurance does not guarantee that title problem will not happen, it does cover you against loss due to title defects that could threaten your ownership, up to the policy amount.
Your rights are protected by title insurance, which also covers legal fees. While title losses are rare, they can be costly and time-consuming if you don't have proper insurance.
