What is Title Insurance?
Why Every Homeowner Needs an Owner’s Policy of Title Insurance
Title insurance protects the insured against covered title defects affecting the insured property. When you buy a home, you expect to enjoy important property rights. For example, you likely expect to be able to occupy the property, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell your property or pledge it as security for a loan. Title insurance is designed to protect these important property rights. Here are seven reasons you should purchase an owner’s policy of title insurance.
Buying a home is a big investment. For a one-time premium, an owner’s policy of title insurance helps protect it.
The seller may not own the home or have authority to sell it. Title insurance offers coverage against defects in title caused by fraud, forgery, incapacity, impersonation or the seller’s lack of authority to sell the property.
Warranties in your deed may not guarantee your ownership of the home. Even if the seller warrants good title to you in the deed, the seller may not have the money to pay your losses if a problem arises. When you purchase an Owner’s Policy of title insurance from Endeavor Title, you have the financial power of Endeavor Title and our underwriters, First American Title or Stewart Title Guaranty Company to protect you against loss from covered claims.
The policy may cover more than just ownership. Depending on the type of policy issued, coverage insuring against loss due to disputes over boundaries, access rights and easements may be provided to you. Ask about available options for extended or expanded coverage.
A lender’s title policy does not cover you. Your lender has required you to pay for a lender’s policy of title insurance, but that policy only provides insurance to the lender. A homeowner is not covered, and cannot make a claim, under a lender’s policy of title insurance.
The high cost of claims. Title disputes are not cheap. Are you prepared to pay a lawyer to fight for you in court? Title insurance includes coverage for legal expenses which may be necessary to investigate, litigate or settle an adverse claim.
Coverage for a one-time premium. The premium for an owner’s policy of title insurance is only paid once and covers you for as long as you hold an interest in the title to your home. The coverage automatically continues for the benefit of your heirs as well.