Title Insurance – What is it?
As a part of your closing on the real estate you are purchasing, you are required to purchase several types of insurance. Hazard (or homeowners) and flood insurance policies cover damage against fire and other natural disasters. Private mortgage insurance, if necessary, insures the lender against losses in low equity transactions.
The lender's title insurance policy purchased at your closing only insures the lender that their mortgage has priority over any other liens. Where does this leave your equity? Owner's title insurance is completely different than the title insurance you are purchasing for the lender. Some items that the title examination uncovers are matters of public record, such as unpaid or delinquent taxes, mortgages, judgments against previous owners, easements, restrictions and leases.
We find and report defects in the title to the real estate you wish to purchase, so that these matters can be corrected and cleared up. It is the first of many benefits you receive when title insurance is ordered.
Protection against losses from claims on real estate, which cannot be discovered by examination of the public records, is the second part of the benefit that Stewart Advanced Land Title, Ltd., provides through an owner's title insurance policy. For instance, the home that you paid for and its deed could be threatened or lost by circumstances, such as forgery, fraud, confusion with similar names, undiscovered heirs of a prior owner, or errors in the public record. All of these contingencies will be covered in your owner's policy.
It is assurance that every possible cloud on the title of land you are purchasing – which can be discovered by the title search of the public records – has been called to your attention so that any defects can be corrected before you buy. It is also the assurance that if any undisclosed claim covered by your policy arises to threaten the ownership to your home, it will be disposed of, or you will be reimbursed exactly as your policy provides in the following manner.
- Defending your title, in court if necessary, at our expense without limitation.
- Bearing the cost of settling the claim if it proves valid, in order to perfect your title and keep you in possession of your property.
Unlike many other forms of insurance, the premium is only paid once. There are no annual payments to keep your owner's policy in effect. In addition, if the title insurance is purchased at or within 30 days of the closing, you will receive a dramatic discount on your title insurance premium. For example, coverage on a $100,000 policy could result in a $400 savings if purchased within the above period.
The associates at Stewart Advanced Land Title, Ltd., will answer any questions you have in regards to owner's title insurance and the rates for your closing.
Stewart Advanced Land Title, Ltd., is an exclusive agent for Stewart Title Guaranty Company.
Stewart Title Guaranty Company is among the largest insurers in the United States and has received a rating of A'' (double prime) from Demotech, Inc., for its ability to pay claims. As one of the largest insurers in the nation, Stewart Title maintains strict guidelines for its agents. Stewart Advanced Land Title, Ltd., is proud to have maintained this relationship since inception.
Contact our office for more information.
*All title policies are subject to certain exceptions and exclusions from coverage. Please contact an agent for more details.