Title Insurance
What is the concept of title insurance?
Property title insurance works by providing a safety net against any past issues that could affect your ownership of the property. Before issuing a policy, a title company conducts a thorough search of public records to identify any potential problems. Once the title is deemed clear, the insurance policy is issued.
Key benefits of property title insurance
Key Features policy covers:
Legal protection: Covers legal fees for defending against title claims. Financial security: Protects against financial losses due to title defects. Peace of mind: Ensures that your ownership rights are secure.
What is the best reason for a buyer to obtain title insurance?
Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen event, say a fire, theft or accident. The purpose of title insurance, on the other hand, is to eliminate risks and prevent losses caused by defects in title that happened in the past.
What is the best reason for a buyer to obtain title insurance?
Who Should Buy
Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen event, say a fire, theft or accident. The purpose of title insurance, on the other hand, is to eliminate risks and prevent losses caused by defects in title that happened in the past.
What are the benefits of purchasing owner's title insurance?
Title insurance can protect you if someone later sues and says they have a claim against the home from before you purchased it. Legal claims could come from a previous owner’s failure to pay taxes, or from contractors who say they were not paid for work done on the home before you purchased it.
What all Title Insurance Covers?
The insurance offers protection against following points:
- Frauds like forgery or impersonation
- Litigation costs
- If a title dispute arises during a sale, the insurance company will cover the cost incurred for legal damage
- Expenses are covered if there is a need for settling the matter out of court by giving compensation to the associated parties
- Covers fraud, issues not discovered prior to the commencement of the policy
Claim Process for Title Insurance
Below are the general steps for claim process:
- Inform the insurance company within 45 days of the occurrence of the event for which you need to file the claim
- Insured must submit the claim form along with the supporting documents within 90 days from notifying about the claim
- In case of any claim by a third-party, the insurance company will indemnify property buyers to the extent of the loss incurred by them
