| Title insurance is one of the most
unique and valuable insurance products for property owners today.
Unfortunately, despite its necessity it is also one of the least
understood aspects of home ownership. This page is designed to help answer
some of consumers' most common questions about title insurance.
What Is Title Insurance?
Simply put, it protects the insured from losses as the result of claims on
one's ownership of real estate. It is unique in that it insures for
problems which occurred even before the insured took title. Following are
some of the most common problems covered by title insurance:
- Fraudulant or misrepresented deeds, releases, etc.
- Recording mistakes
- Undisclosed or missing heirs
- Unfiled liens
- Incompetency of previous sellers
- Erroneous interpretations of wills
- Bankruptcy
- False representation by sellers
Another feature of title insurance is the obligation of the insurer to
defend you against claims of others, regardless of the validity of the
claim. Defending your property against a false claim can be a costly and
time consuming endeavor, but with title insurance you need not worry.
What Are the Different Types of Title Insurance?
There are two basic types of policies--Owner's Policy and Loan Policy. As
the names imply, the Owner's Policy protects the interests of the real
estate owner, while the Loan Policy protects the interest of the lender or
mortgagor.
Do I Need Both Types of Coverage?
Yes-a Loan Policy offers no protection to the land owner. A claim could
arise which provides no threat to the lender but could cause great loss to
the owner. An Owner's Policy is for your protection.
When Does Title Insurance Expire?
Never. You and your heirs are protected for as long as you or your
heirs own the insured property.
What Is the Cost?
Title insurance costs vary depending on a wide range of variables, but in
all cases it is a one time only fee and does not need to be renewed like
most other types of insurance. Call Schmitt Title & Escrow Corp. today
for a quote at 920.236.1020. |