What Is Title Insurance?
Lenders and buyers are protected from financial loss due to problems in the title to a property by title insurance. Continue reading to find out more.
Source: Pexels
The primary aim of enrolling in an insurance policy is to control risks and protect yourself against unexpected financial losses.
We understand you are probably puzzled about several things right now:
What is title insurance, and how does it work?
What types of risks does it cover?
Is this form of insurance necessary?
What are the things covered under this type of insurance?
Don’t worry! We have covered all these topics in this article. So let us get started.
What is Title Insurance?
As the name implies, title insurance protects the property owner, whether commercial or residential, from the property ownership losses.
For example, in the event of fraud, someone could fake your signature on documents to transfer ownership of your property to their names and then run away with the money. It is when title insurance comes in to save you from such financial ruin.
Is it Mandatory to Get Title Insurance?
To understand whether this is necessary for your circumstances, seek expert counsel from relevant professionals such as lawyers or insurance brokers. Once you are aware of all the options open to you, you will be better off to make an informed decision.
Things Covered Under this Insurance
A title insurance policy will comfort you in the following circumstances.
- Unidentified title defects (problems with the property’s title that hinder you from having clear possession).
- Pending liabilities on the estate’s title (for example, the prior owner had outstanding debts secured against the property from utilities, loans, or condominium levies).
- Expropriation difficulties.
- Title fraud.
- Other ownership issues that could jeopardize your ability to sell, lease, or rent your property in the future.
Title Insurance policy will also cover losses up to the maximum level of coverage. Some of them additionally include coverage for legal fees associated with obtaining control of your property.
Your Title Insurance policy will give you total protection, given you are the owner of the property. You will cover the damages and legal fees incurred in getting back your property title.
Always read the terms and conditions thoroughly and get expert advice if you are unsure about the correct interpretations. It will also assist you in understanding the limitations of the policy. If you want to learn more about mortgages and their distinct types, you can refer to our blog links.
