Title Insurance 101

Even those property transactions that appear to have been completed without issue can bear hidden dangers. The approval of the loan application does not mean that a homebuyer will not face disaster in the future. Title insurance provides protection against potential disasters with the capacity to financially ruin a buyer in the wake of a recent acquisition. Find below Title Insurance 101, the basics of title insurance:

What is Title Insurance?

The term “title” refers to one’s ownership of a piece of property, while it grants the owner protection against legal action should any issues arise that originate prior to the purchase of said property. Any defects which might allow for legal action to be taken against the owner will be covered. The same holds true for legal expenses the owner might incur in defending him or herself. They will be reimbursed up to the face amount stated in their insurance policy. Visit Marina Title’s Overview page, for more information about it.

Two Types of Title Insurance

To protect its investors, the lender will take out a Loan Policy of Title Insurance. In addition, the borrower will purchase an Owner’s Policy of Title Insurance to preserve the equity of his or her investment against any form of damages, legal and otherwise. Both policies are necessary to ensure the property is protected to the fullest extent possible.

What Does Title Insurance Do?

Unlike other varieties of insurance policies, protects the policy holder against problems and damages which affected the property before the transference of ownership was effected. In other words, the owner will be guarded against any legal issues for which they might otherwise be held accountable, such as erroneous or forged deeds. Other possible issues that might afflict the property include illicit transfer due to false wills, tangled probate cases, spelling and other errors occurring in legal documents and so on. Title insurance safeguards a homebuyer from such disasters and many more.

The owner will not be protected from any problems originating after his assumption of ownership of the property.

How to Buy a Policy

Contact a title company and inquire about an Owner’s Policy of Title Insurance. Throughout most of the country, its policy premiums are government-regulated, and a buyer only needs to pay it once. Because the policy’s face amount must be equal to the value of the property, the cost of the premium relies on the total price paid for the property. A title insurance policy guarantees that the policy holder is the sole owner of the deed and that said deed was properly filed and free of defect.

Once an official survey document is handed to the overseeing insurance agent, the owner will have the peace of mind that comes with no one being able to lay claim to any part or parcel of his or her property. However, in the case of a survey exception, the owner may need to pay one additional premium.

To prevent damages to or loss of property, it is necessary to own a title insurance policy. For further information about title insurance, you can contact us by phone at  (305) 901-5628  or by email at info@marinatitle.com.