   |
|
|
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Title insurance eliminates many risks and losses caused by defect in title from an event that occurred before you owned the property.
Title insurance is different from other types of insurance because it protects you from a loss that may have occurred in the past. Other types of insurance cover you against losses that may occur in the future.
Another difference is that you pay a one-time premium. A title insurance policy protects you from risks or undiscovered interests for as long as you own the property.
There are two principal forms of title insurance: lender’s and owner’s.
A lender’s policy protects the mortgage holder from defect
in title that results in a loss.
Owner's
An owner’s policy protects against losses that may occur from a defect in your ownership or interest you have in the property. Examples of coverage include but are not limited to the following:
• Invalid documents completed by an expired attorney
• Invalid deeds delivered after the death of the grantor
• Claims for unpaid estate inheritance and gift taxes against prior owners
• Fraud
• Unrecorded easements
• Undisclosed descendents of former owners
• Protection from financial loss due to demands 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• False impersonation of the true title holder of property
• Forged documents
• Deeds by persons of unsound mind, minors, or supposedly single
persons but actually married
