Category: Title Insurance

What to Consider When Buying Title Insurance

Title insurance protects your investment in a property in case the title comes under dispute in the future. It covers against losses caused due to title disputes. If you are planning to buy title insurance, you need to first pick the right title insurance company. There are few factors that you must keep in mind when choosing a title insurance Boca Raton company:

Checks review and get referrals: Whenever you look for an insurance company, check reviews and testimonials. You can check for reviews at company websites. You can also ask in online real estate forums which have genuine buyers. Other reliable sources include real estate agents. These are professionals who work in this field and hence, have a good idea of reputable companies in the field. Ask them about companies that are known for their diligence and fair settlement.

Title search: Look for companies that also offer title search services. This is different from insurance but can be equally important. A title search can expose any outstanding dues, liabilities or other claims that threaten the ownership of a property. An insurance company is better placed to carry out such searches because they have the kind of contacts and network that you cannot match. Though most title insurance Boca Raton companies will carry out some basic title search, it is always best to clarify this at the beginning.

Communication: A company or agent’s communication skills and patterns tell you a lot about their working. Are they prompt in answering your concerns? Are you satisfied with their explanation or communication? Is their communication clear, concise and complete?

Location: It is better to go with a local title insurance company. The rates of title search vary from one place to another. So, find out the rate for title insurance Boca Raton. There are other issues like filing documents and face-to-face discussions/clarifications that become easier with a local company.

What You Should Know About Title Insurance

If you are buying a property, you may have heard about title insurance. Title insurance protects the buyer from any threats to his/her ownership in the future. This may include debts, liens against the property or unknown heirs. Buyers are typically advised to buy Boca Raton title insurance. But there are some things you should know about this insurance before you buy:

It is not necessary to buy title insurance. The law does not make it mandatory. You can buy a house without the assurance of title insurance. However, any losses in such cases will be completely borne by you.

While title insurance is not mandatory, you may have to buy title insurance if you are looking for a mortgage lender to finance your investment. Most lenders will demand title insurance to protect their own investment. After all, any threat to your ownership will jeopardize their returns.

Choose your title insurance firm carefully. You can compare the different terms offered by different companies. This will give you an idea about the costs and usual protective terms offered under the insurance.

Boca Raton title insurance is a one-time cost. Unlike other insurances, you will not be required to pay premiums every year.

Find out if the insurance company offers multi-tiered pricing on their policies. Many insurance companies offer standard and enhanced policies. Some of these firms will only quote the enhanced price and not disclose the standard pricing. This is because the standard pricing is lower.

Even if you did not buy title insurance at the time of buying a property, you will probably ask to buy one if you plan to refinance.

Boca Raton title insurance companies fight aggressively to get customers. As a buyer, you must educate yourself on the different options in the market and look for the most favorable terms. You can also ask for discounts or negotiate with the insurance company.

Infographic : Title Insurance — Scope & Benefits

This infographic titled ‘What is Title Insurance’ explains the meaning, scope, and benefits of a title insurance. Title insurance is a type of indemnity insurance that protects against the loss of title or ownership of a property due to a past claim or fault in the original property deed. It minimizes the holder’s loss from any legal claims on the property title made in the past and may occur in the future.

The scope

What does title insurance cover and who does it protect?

Title insurance protects both the property owner and the lender. Either party can choose to buy the insurance to cover their investment. Quite often, lenders make it a condition for the mortgage. By protecting the interests of the property owner, a title insurance also protects the lender’s investment. Even without the mortgage condition, a property owner may choose voluntarily to buy the insurance.

The benefits

Protection: The main reason property buyers and lenders buy insurance is to protect themselves against any future claims on the property. Such claims could result from a fault in the original property deeds, outstanding liens, debts or some past claimant. Such claims are usually investigated through title searches. But even the most diligent and thorough title searches could miss details. If the claim surfaces in the future, it could threaten the owner’s title. Title insurance covers the buyer against any such eventuality.

A gesture: Typically, title insurance is bought by buyers and lenders. But in some cases, a seller may also buy title insurance. This is usually done as a gesture of good faith. Through the insurance, the buyer shows that his/her ownership of the property is clear. Furthermore, it is covered against any loss.

For more information, please refer to the graphic below.

Why You Should Get Title Insurance

Title insurance protects you against any financial loss related to the ownership of a property. This can occur in the form of an overdue loan, mortgage, unpaid taxes, another claimant or liens against the property. Boca Raton title insurance protects you against any financial loss that you may suffer due to these ownership-related issues.

There are two types of title insurance: lender’s policy and owner’s policy. The lender’s policy is required by the lender, since any issues with ownership will affect the lender’s security. The owner’s policy protects your interests and covers the value of the property at the time of purchase.

Unlike other forms of insurance, title insurance protects against events in the past. It will not protect you if there are any issues regarding the ownership after you buy the insurance. For example, it does not protect your interests if you forget to pay your mortgage later.

A title company will typically do a title search before selling Boca Raton title insurance. The search is conducted to ensure that there are no contesting claims to the ownership of the property, which in turn minimizes the risk associated with the title.

Infographic : What Is Title Insurance And Why Is It Needed?

The Infographic below looks at title insurance and the different types that are available in the market to protect property owners against loss of title or ownership. Title insurance is a kind of indemnity that safeguards ownership rights or title of a property.

Two main types of title insurance are lender’s insurance and owner’s insurance. Lender’s Insurance protects against any loss for as long as they have an interest in the property. This kind of Insurance covers all risk through the duration of the mortgage. As an added safety precaution, the loan policy is generally included on the loan amount.

Owner’s insurance, on the other hand, is put in place to protect the interests of property owners and the legal heirs of their property, for as long as the property is owned by them. The primary purpose of an owner’s policy is to pay for legal protection against any valid claims made on the title.

For more information, refer to the infographic below.

Infographic : The Purpose of Title Insurance

The infographic below describes the purpose for title insurance. Title insurance is a form of indemnity insurance which insures against financial loss from defects in title to real property. READ MORE

Title Insurance: What You Really Should Know About It

How do you define who owns the right over a property? How do you claim for an insurance on a property you own when you have nothing to show to prove your claim? A title defines who currently has the legal right over a property.Title insurance protects the title from any past, current, or future defects in the title of a property. For example, if the property is in your name, you are the title holder. If it is a mortgaged property, the lender will hold right over the property. READ MORE

Infographic: Need to Buy Title Insurance in Boca Raton

The infographic, “Why You Should Buy Title Insurance in Boca Raton,” describes the benefits of title insurance. Title insurance is a form of indemnity insurance that protects against any financial losses from defects in title to real property.Title insurance can also defend against a lawsuit attacking the title of a property. READ MORE

Infographic: Why Title Insurance is So Important in Boca Raton

The infographic, “Why it is Important to have Title Insurance in Boca Raton,” explains why title insurance is necessary when owning property. Title Insurance is the legal right to possession of ownership. It protects a property owner from any losses sustained from defects in the title.Overall, title Insurance protects the Buyer or new owner in case any unforeseen issues arise. READ MORE