 |
|
Title insurance
is different from other types of insurance in that it
protects you, the insured, from a loss that may occur
from matters or faults from the past. Other types of insurance
such as auto, life or health cover you against losses
that may occur in the future. Title insurance does not
protect against any future faults.
Another difference is that you pay a one-time premium.
A title insurance policy will protect you from "risks"
or undiscovered interests.
There are two principal forms of title insurance:
- The lender's
policy
- The homeowner's
policy
What
is a Lender's Policy?
A lender’s policy protects the mortgage holder. If there
is a fault in title that results in a loss, the mortgage
holder will be paid back.
What is a Homeowner's Policy?
A homeowner’s policy protects you, the purchaser, against
a loss that may occur from a fault in your ownership or
interest you have in the property. You should protect
the equity in your new home with a title policy.
What does a Homeowner's Policy provide?
Protection from financial loss due to demands that may
be charged against the title to your home, up to the cost
of the title policy. Payment of legal costs if the title
insurer has to defend your title against a covered claim.
Payment of successful claims against the title to your
home covered by the policy, up to the cost of the policy.
There are many title insurance companies to choose from.
Your attorney, escrow company, or real estate agent should
be able to help you make a decision.
|
|
|
|
|
|
|
