What is Title Insurance
Consumers frequently ask us, “What is title insurance?” It is important to understand the importance of obtaining title insurance for your property.
There are different types of policies each containing different insuring provisions. An Owner’s Policy, for example, provides you with not only an insurance policy but also peace of mind. Among other things, an owner’s policy of title insurance insures that upon transfer of the property, you as the buyer are the owner of the property as stated on policy, holding the same estate or interest shown on the policy, and that your property is subject only those liens and/or encumbrances, if any, listed on schedule B of the policy. This essentially means that no other person has any claim or right to your property and all liens from previous owners have been properly paid off.
If a defect is found during the examination of your property, these items will be taken care of prior to or at closing. These problems could include liens, unpaid taxes, judgment and loans. And if you suffer a loss as a result of title being defective, or you are sued because of a matter covered by the policy, the title insurance company will take action to pay the loss, retain counsel to defend you in a lawsuit, or otherwise seek to cure the title defect, pursuant to, and subject to the terms and conditions of your title insurance policy.
Depending on the type of owner’s policy purchased, your coverage will typically last until you transfer the title of your property.
Imagine purchasing your new home and moving in, only to find that you do not actually own your property, or that your title is different from that which was insured by the policy. This could be a costly and potentially devastating discovery.
Here is a quick video that explains title insurance, what it covers and why it’s needed.
To gain a better understanding of title insurance, call us today at 303.831.7575 and speak with a representative from our team.