Title Insurance Owners Policy

Are you planning to purchase a new property or already own one? If yes, then you should consider getting a title insurance owners policy. This policy will protect you from financial losses that may arise due to defects in the title of your property. In this article, we will discuss all the important aspects of the title insurance owners policy.

What is Title Insurance Owners Policy?

A title insurance owners policy is a type of insurance that protects property owners from losses due to defects in the title of their property. This policy provides coverage for the property owner and their heirs for as long as they own the property. The insurance company conducts a thorough search of public records to identify any issues that may affect the title of the property.

It is important to note that a title insurance owners policy is different from a lender’s title insurance policy, which is often required by lenders when you take out a mortgage.

How Does Title Insurance Owners Policy Work?

Before issuing a policy, the title insurance company will conduct a thorough search of public records and examine several documents related to the property. These documents include deeds, mortgages, court records, and many more. The title company will look for any liens, judgments, or unpaid taxes on the property. In addition, they will verify the legal ownership of the property.

If any defects or issues are found during the search, the title company will work to resolve them before issuing the policy. Once the policy is issued, the property owner is protected from any financial losses due to defects in the title.

Table 1: Common Title Issues

What Does Title Insurance Owners Policy Cover?

A title insurance owners policy provides coverage for financial losses that may arise due to defects in the title. This policy typically covers the following:

• Forgery or impersonation
• Incorrect signatures or inadequate legal capacity of parties involved
• Undisclosed heirs and spousal claims
• Fraud
• Deeds not properly recorded
• Liens and encumbrances
• Boundary disputes
• Errors in public records
• Defective property title

What Does Title Insurance Owners Policy Not Cover?

While a title insurance owners policy provides coverage for many issues related to the title of the property, there are some issues that it does not cover. These include:

• Environmental hazards
• Market value decline
• Defects created after the policy issue date
• Issues that were disclosed to the buyer before the purchase of the property

How Much Does Title Insurance Owners Policy Cost?

The cost of a title insurance owners policy varies depending on the value of the property and the location. In general, the cost of the policy is a one-time fee paid at the time of the property purchase. The average cost is around 0.5% to 1% of the property’s value.

FAQs

1. Is Title Insurance Owners Policy Required?

While title insurance owners policy is not required by law, it is a good idea to have it. This policy will protect you from financial losses due to defects in the title of your property.

2. How Long Does Title Insurance Owners Policy Coverage Last?

A title insurance owners policy provides coverage for as long as you own the property. The policy will also provide protection for your heirs after your death.

3. Can I Change My Title Insurance Owners Policy?

No, you cannot change your title insurance owners policy once it is issued. However, you can purchase additional coverage or endorsements to the policy at any time.

4. Who Pays for the Title Insurance Owners Policy?

In most cases, the buyer pays for the title insurance owners policy. However, in some cases, the seller may agree to pay for it as part of the sales agreement.

5. Do I Need Title Insurance Owners Policy if I Paid in Cash?

Yes, you still need title insurance owners policy even if you paid in cash. This policy will protect you from financial losses due to defects in the title of your property.

Conclusion

Title insurance owners policy is a crucial protection for property owners against potential financial losses due to defects in the title. This policy can provide peace of mind for property owners, and it is definitely worth considering when you purchase a new property.