As a part of the closing process on real estate you are required
to purchase several types of insurance. Hazard (or homeowners) and flood
insurance policies cover damage from fire and other natural disasters. Private
mortgage insurance, if necessary, insures the lender against loss in low equity
transactions. Lenders also require a title insurance policy be purchased to
insure the lender that their mortgage has priority over any other liens.
But, what about protection for you as the owner?
When buying a home, you are
really purchasing title to the land - the right to occupy and use the land. That
title may be limited by rights and claims asserted by others, which limit your
use and enjoyment of the property, and even bring financial loss. Title
insurance protects against these types of hazards.
Title Insurance...What is it?
Owner's Title Insurance is
a way for you as a homeowner to protect your investment from hidden title
hazards that may threaten your financial investment in your home. Title
insuring begins with a search of public land records affecting the real estate
to determine if the property is insurable. An important part of title
insurance is its emphasis on risk elimination before insuring. This gives
you the best possible chance to avoid title claims and loss. Examples of
those issues that can be discovered and corrected prior to closing include:
· Deeds, wills and trusts
that contain improper wording or incorrect names
· Outstanding mortgages
and judgments, unpaid taxes
· Easements that allow
construction of a road or utility line
· Pending legal action
against the property
· Incorrect notary
acknowledgements
Through the title search
and underwriting, title problems are disclosed so they can be corrected whenever
possible. However, even the most careful preventive work cannot locate all
title hazards.
Hidden hazards can emerge
after closing, resulting in unpleasant and costly surprises. Some examples
of these types of hazards include:
· A forged signature on a
document
· An unknown heir of a
previous owner who is claiming ownership of the property
· Instruments executed
under and expired or fabricated power of attorney
· Mistakes in the public
records
Title insurance offers financial protection against
these and other covered title hazards. Your policy will pay for defense
against an attack on title, and will either perfect the title or pay valid
claims.
Costs
The premium for this
coverage is paid only once and lasts as long as you, the policyholder - or
your heirs - have an interest in the insured property. This may even
be after you have sold the property.
In addition, if an Owner's Policy of title insurance is purchased
simultaneously with any required lenders title insurance policy, you will
receive a dramatic discount on your title insurance premium. Ask our staff to
explain how you can save with "Simultaneous Issuance" Premium Rate.
Your home is your most important
investment. Before you go to closing, ask about your title insurance
protection, and be sure to protect your home with an owner's title insurance
policy.
Underwriters
Stewart Title & Settlement is a licensed agent for:
Stewart Title Guaranty Company Stewart is among the largest
insurers in the United States and has received an A double prime
rating for its ability to pay claims. As one of the largest insurers in the
nation, Stewart Title maintains strict guidelines for their agents. Stewart
Title and Settlement is proud to have maintained this relationship since their
inception.
Contact our office for more information
1-800-644-7842.
* All title policies are subject to
certain exceptions and exclusions from coverage. Please contact an agent for
more details.
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