While most of heard of homeowners insurance, title insurance may not be as familiar when it comes to real estate transactions and ownership.
Title when it comes to real estate is defined as a formal right or evidence of ownership of a property. It essentially gives you the right to possess and use the property. Title insurance is a policy that protects a lender (mortgage company) or owner against loss in the event of property ownership dispute. In other words, it will protect an owner’s financial interest on the property against loss due to title defects, liens or other related issues. It will ultimately protect you against foreseeable and unforeseeable claims against the home.
Unlike other insurance, Title insurance is paid just once at closing and the cost is directly related to the value of the property. The policy covers you for as long as you or your heirs own the property.
Should you incur a lawsuit attacking your title, title insurance will either correct the problem or pay you for the losses up to the face amount of the policy. In addition, the policy will protect you after you sell the home, so you aren’t stuck should there be a problem after closing.
For additional questions and information on title insurance contact Alliant Title and Escrow at 561-912-0922 or visit https://alliantfl.com/title-insurance/.