What Can Title Insurance Do For Me?
Ensure Clean Title
If you do not receive clear (“marketable as insurable”) title to property you purchase, your wallet and in some case your dependants, can suffer greatly from unanticipated legal cost. That’s why you need a competent and reliable title agent backed by reputable title underwriters to ensure that you receive marketable as insurable title to the real estate you purchase. It is our business to investigate the real property you intend to purchase or secure as collateral, and advise you of any existing rights or claims that may, in the future, jeopardize your continuing possession or mortgage priority. Title insurance provides you with this protection.
The above advertisement says it all. So how does title insurance work? The purchaser, consumer is protected against loss by the issuance of a Title Insurance Policy. Likewise, if the purchase transaction is being financed by lender, a lender may be protected against loss by issuance of a Mortgagee Title Insurance Policy. Generally, the Owners Policy states that if the status of title to the parcel of real property is different than as represented in the policy, and the insured owner suffers a loss of the result of the title defect, the insurer will reimburse the insured for that loss (inclusive of legal expenses), up to the face amount of the policy.
What Are Hidden Risks?
Sometimes title to real property can be susceptible to hazards which are considered "Hidden Risks." Hidden Risks are those matters, rights or claims that are not discernable (i.e. discoverable) by a search and examination of the public records. Hidden risks include matters such as forgery, incompetency issues, identity theft, and execution issues. Hidden risks may provide a basis for a claim superior to your own and may cause your title to fail. In order to guard you against this eventuality, our title underwriters provide insurance coverage for such claims should they arise. This is a second benefit the insured receives from Owners or Mortgagee Policy of Title Insurance.
Can There Be A Defect If The Title Has Been Insured?
Title insurance is issued after a careful examination of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present. For instance, detecting fraud and other crimes is very difficult, and they oftentimes do not manifest until it is too late. Your title policy is your shield against such hazards.
How Does A Title Insurance Policy Protect Against Claims?
If a claim is made against your insured title, your title policy protects you by obligating the title insurance Underwriter to: (1) Defend your title bearing the cost of settling the claim; or (2) if the claim is incapable of being cured, then the Underwriter is obligated to indemnify you for your loss up to the insured value.
Only One Premium
Distinct from other forms of insurance, the original premium is your only cost as long as you or your heirs own the property.