Types of Title Insurance: What You Need to Know

In this guide, Advanced Title Company in Clifton will delve into the various types of title insurance, shedding light on what you need to know to make informed decisions about your real estate transactions.

Title insurance is a substantial investment that can help protect your property and your financial well-being. Contact Advanced Title Company in Clifton at (970) 255-7677 to get yours and have your ownership rights covered.

Title insurance is a crucial component of the real estate industry, yet it remains a relatively misunderstood aspect of property transactions for many buyers and homeowners. This form of insurance plays a pivotal role in safeguarding your investment and providing peace of mind when it comes to the ownership of your property.

Defining Title Insurance

Title insurance helps protect property owners and mortgage lenders from financial loss if there are problems with a property's title. If you're unfamiliar with this concept, a property's title is the legal right to own and use the property.

Types of Title Insurance

Title insurance is typically purchased when a property is bought or sold or when a mortgage is refinanced. There are two main types of title insurance: lender's title insurance and owner's title insurance.

Lender's Title Insurance

Protects the lender's financial interest in the property. If a title problem is discovered after the property is purchased, the lender's title insurance policy will pay to defend the lender's interest in the property.

Owner's Title Insurance

This type of title insurance protects the homeowner's financial interest in the property. Suppose a title problem is discovered after the property is purchased. In that case, the owner's title insurance policy will pay to defend the homeowner's ownership rights and pay for any financial losses that the homeowner suffers due to the title problem.

What Does Title Insurance Cover?

Both types of title insurance policies typically cover a wide range of title problems, including:

• Unpaid liens or taxes
• Forged deeds
• Easements or encroachments
• Undisclosed heirs
• Errors in public records
• Building code violations
• Title problems that arose before the homeowner purchased the property

How Much Does Title Insurance Cost?

The cost of title insurance varies depending on the value of the property and the state where the property is located. However, title insurance is generally a one-time expense, and the cost is typically much lower than the cost of defending a title claim.

Protecting your real estate assets is more affordable than dealing with title claims. The title experts at Advanced Title Company in Clifton are ready to spot and correct title problems without bothering you. Call them at (970) 255-7677 to make an appointment.

Who Pays for Title Insurance?

In most cases, the property buyer pays for both the lender's title insurance and the owner's title insurance. However, in some states, the seller is required to pay for the owner's title insurance policy.

How to Get Title Insurance

You need to contact a reliable and adept title insurance company to get title insurance. The title insurance company will conduct a title search to identify any potential title problems. Once the title search is complete, the title insurance company will issue a title insurance policy.

How to File a Title Insurance Claim

If you discover a title problem after you have purchased a property, you should contact your title insurance company immediately. The title insurance company will investigate the title problem and determine whether your policy covers it. If your policy covers the title problem, the title insurance company will pay to defend your ownership rights and for any financial losses you suffer due to the title problem.

Benefits of Title Insurance

Title insurance offers several benefits, including:

• Peace of mind: Title insurance gives you peace of mind, knowing you are protected from financial losses. An adept title team will always look out for you and timely find these potential problems with your property's title.
• Expert defense and financial protection: If a title problem is discovered, your title insurance company will provide expert defense to protect your ownership rights and covered expenses.

Additional Things to Keep In Mind about Title Insurance

• Title insurance is not a homeowners insurance policy. Homeowners insurance protects you from financial losses caused by things like fire, theft, and weather damage. Title insurance protects you from financial losses caused by problems with your property's title.
• As mentioned above, title insurance is usually acquired when a property is bought or sold or when you remortgage. However, you can also purchase title insurance for a property you own.
• Title insurance is a one-time expense, and the policy remains in effect for as long as you own the property.

If you have questions about title insurance, speak with a qualified title insurance agent such as Advanced Title Company in Clifton. You can dial (970) 255-7677 for an estimated price quotation.