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.