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.
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.
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.
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.
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.
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 is an indemnity insurance that protects its holder from any loss that arises from defects in the property title. The two type of Boca Raton title insurance found in property transactions are: READ MORE
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
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
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
The average middle-class American will usually purchase one home in their lifetime. This is an investment that requires a lot of thought and careful considerations. When purchasing property, there may be skepticism, doubt, or confusion. How can a home buyer make sure that they are protecting their investment? READ MORE
When property is purchased, the property title is transferred from the seller to the buyer. The property title serves as the legal proof of your ownership. Obtaining title insurance in Boca Raton is highly recommended to protect your assets. READ MORE