What is Title Insurance?
Title insurance offers protection from financial loss and related legal expenses in the event there is a defect in title to your property that is covered by the policy. Title insurance is different from other types of insurance because it focuses on risk prevention instead of risk assumption. In order to provide title insurance, title examiners review the history of the property and aim to eliminate issues with title before the purchase occurs.
Title insurance doesn't require monthly premium payments. Premium is paid once at closing.
Should I get title insurance?
Our recommendation is that you always obtain title insurance when you purchase property - be it your new home or an investment property. An Owner's Policy provides peace of mind that your title company will stand behind you if a covered title issue or defect arises after the purchase.
What does title insurance cover?
A lot of title issues may happen, even after careful search of public records. These hidden defects are dangerous because you might not learn about them for months, or even years, after purchase. Some common examples of risks covered by your Owner's Policy include defects in title caused by:
- Improper execution of documents
- Mistakes in recording or indexing legal documents
- Forgeries and fraud
- Undisclosed or missing heirs
- Unpaid taxes and assessments
- Unreleased mortgages
- Mental incompetence of grantors on the deed
- Impersonation of the true owners of the land
- Refusal of a potential purchaser to accept title based on the condition of the title
How much does title insurance cost?
Title insurance premium is generally based on the value of the property to be purchased. If you need a quote, feel free to write us at info@strongholdtitle.net.