WHY DO I NEED TITLE INSURANCE?
For most Americans, our
home is the single largest financial investment we ever
make. More importantly, it’s where we raise our families,
share time with friends, live our lives. And while
ownership of our home may seem very straightforward, our
rights to enjoy our property aren’t always as clear. There
are literally dozens of ways in which your title—and your
ownership of—the property can be jeopardized. The title
insurance industry and the policies it provides exist to
ensure that title issues don’t affect your home ownership
How does Title Insurance differ from other types of
Title insurance isn’t like most of the things
we Americans buy. In fact, it’s not exactly a product,
but more a process. 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. It’s different from other kinds of insurance, too,
in that the premium you pay just once buys coverage that
lasts the entire time you, or your heirs, own your
home—whether it’s five years or 105!
IF A LENDER GETS TITLE INSURANCE FOR
ITS MORTGAGE, WHY DO I NEED A SEPARATE POLICY FOR MYSELF?
The interests of the
lender and the owner in a real estate transaction are
substantially different. The lender's policy is written in
the amount of the loan. In the event of an adverse claim or
a total failure of title, the lender would be covered up to
the full amount of its investment—while the buyer would have
no coverage at all. Owner’s title insurance will protect the
purchaser if a claim is made against the title. Owner’s
title insurance will also pay for any legal fees incurred in
defending the claim. If only lender’s title insurance has
been issued, the homeowner would not be covered for legal
fees and might lose the property should a problem arise.
have any questions or wish to obtain quotes for a title
Insurance policy, please contact our
Closing Department or
Catherine L Blakley.
IMPORTANT Reasons Why You Should Have Owner's Title Insurance
For more information on the closing
process and title insurance, go to
Special thanks to the
American Land Title Association, Fidelity National
Title Insurance Company and First American Title Insurance
Company for their contribution
to the above information.