Why do I need Title Insurance?

Title-InsuranceTitle insurance protects you and/or your lender from losses resulting from claims against your ownership of real estate. It is unique because it provides coverage for problems or “hidden risks” (errors, forgeries, unpaid taxes, etc.) that possibly occurred before you took title to the property, yet can jeopardize your ownership rights. 

Some of the basic title insurance coverage includes: 

  • Protection from financial loss (up to the face amount of the policy) due to covered claims against your title.

  • Payment of legal costs to defend against covered claims.

  • Payment of successful claims against your title (up to the face amount of the policy).

  • An unrecorded title defect revealed after closing resulting in a loss of value.

  • Conveyance of title irregularities arising from a deceased person’s estate, a bankruptcy estate or trust.

  • Identifies restrictive covenants limiting your use of the property.

Survey coverage may be given if we are provided with a survey by a licensed surveyor.  Enhanced coverage for many other types of losses may be purchased for an additional premium.

Read your title insurance policy carefully and note possible exclusions and exceptions, which may be taken.  For additional terms and conditions please feel free to contact us.

Homeowner’s Policy versus Lender's Policy:

There are two types of title insurance policies we can issue: a lender’s policy (also known as a “loan” policy) and an owner’s policy. A lender’s policy protects the lender’s investment by paying the mortgage in the event that a title defect voids the owner/buyer’s title to the property. Typically, a lender’s policy does not represent the full property value and the amount of policy protection decreases as the mortgage balance decreases over the life of the loan and terminates when you pay off the mortgage.

An owner’s policy protects the landowner/homeowner against the specific types of claims listed in the policy, usually purchased to cover the full property value. While lenders generally require a lender’s policy as part of the real estate transaction, an owner’s policy is usually optional but strongly recommended.  An owner’s policy protects the owner against loss of title, which insures up to the value of the property and lasts as long as you or your heirs retain an ownership interest in the property.