Title insurance is vital when you are looking for a property. According to a survey report released by Zillow, the median value for property sales in the U.S. has increased over $16,000 in the last year. Keeping up with increased home sales, the title insurance industry is also expected to show fast growth until 2020. As more and more homeowners are choosing title insurance, here are seven things to keep in mind about the importance and the fundamentals of title insurance. Search today for your local title insurance company.
#1 About title insurance
Any insurance is to safeguard your investment against losses that might get accrued in the future. Like you have the automobile insurance to safeguard your car, health insurance to protect against health problems and accidents; title insurance is all about protecting you against claims concerning past occurrences for a property.
#2 Title insurance protection
There are two basic types of title insurances. You can be a real estate owner and purchase title insurance. The same goes for lenders as well. However, lenders require a mortgagor to obtain the title insurance for securing the interest in the property. For the property owner, you need title insurance to protect your investment for the piece of the land or the property.
#3 Title insurance protection types
Keep in mind title insurance is all about an extensive title search for the property. This minimizes the liability potential for the property and helps in protecting the owner or the lender. This is the best possible way to discover past and existing title issues for a particular piece of property. Title insurance will offer you complete protection against litigation and challenges against the legality and validity of your possession.
#4 Cost of title insurance
You need to arrange for monthly payments in any traditional insurance plan. However, title insurance search is a one-time payment deal. The exact cost of the insurance is dependent on the price of the property and the state legislations for title insurance. The average figures are around $544 for the lender’s insurance and $834 for the homeowner.
#5 The necessity of title insurance
The truth is title insurance protects a large number of property owners and lenders annually. Yes, you do not get paid on your policy. The figures are too low on that account, but in detecting problems associated with the title of a property, the title insurance has no competition. Protect your purchases with the right title insurance, starting today.
#6 Title insurance claim types
Here are the following claim types that the title insurance protects you against.
Public record errors
If and when liens go undiscovered