Title insurance is already a requirement especially when purchasing a property. Homeowners find obtaining a title insurance is beneficial to their financial wellbeing. Not to confuse an owner’s coverage from a lender’s coverage, home buyers can secure an owner’s title insurance just for their own protection against clerical errors and mistakes. In fact, owner’s coverage is an insurance which is mostly affordable to a home buyer. As a buyer, an owner’s title insurance protects your interest in the property providing that you own it.
At no costs at all, a title insurance company will come right off defending a buyer’s title especially in cases where the title is challenged or there are liens which should have been paid prior to closing. At closing, home buyers are lured to break out from the prospect of buying an owner’s title insurance just so they can save on their expenses. There are times when real estate agents or lenders will goad buyers to skip this very important title insurance which you will pay only once.
Of course, with the economic recession hitting real estate markets today, many people opt to save their money. But when it comes to purchasing properties, everything will just turn around and they end up paying more in the long run. Mistakes are inevitable and people should be cautious and careful enough in dealing with transactions. Everything should have something ready in case errors might crop up.
A home buyer who opts out of an owner’s title coverage is being shortsighted. When buying a title insurance, there is a one-time fee but no more than that. The fee charged is based upon the property’s value which could differ among other title companies. One of the benefits of securing title insurance is that you can have owner coverage for as long as it takes providing that you own the property you are living in.
Most title insurance companies include provisions. These provisions contain discounts and reissue rates for refinances. Also note that property buyers who do not choose to purchase title insurance, he or she will be required to pay the total sum for the lender’s policy. It all depends on your choices, however.
As a home buyer, you will either get to receive your owner’s policy via mail or at the closing table a few weeks following the closing transaction. It depends on the title insurance company’s internal procedures as well as the closing attorney’s. Along with your deed to the property, your original owner’s policy should be filed in a safe place. These papers are important which can safeguard you against defective surveys, faulty foreclosure notices, fraud, forgery, and the like. When these issues arise in later years, these papers will come in handy since title companies may already dispose your owner policy after closing.
When it comes down to filing a claim, you can seek help from the title insurance company which contains the necessary details in order to start the process. You should provide the title company a clear explanation regarding the claim and support it with any kind of documentation.