What Does Title Insurance Cover?

What Does Title Insurance Cover? Find out with Action Title Naples.One of the biggest investments you will ever make is purchasing a home or property, yet just because you’ve completed the transaction doesn’t mean your ownership is protected. Title Insurance is your defense against any claims over the property before and after you make the purchase, which is why it is so important.

So what is it exactly, and what does title insurance cover? Action Title Services breaks it down for you.

What is Title Insurance?

Title Insurance is just what it sounds like: insurance on the title of your home or property. This includes in-depth research prior to your purchase to determine whether there are any faults with the title that can compromise your ownership.

There are two parts to title insurance: the initial examination of your title and the protection afterward. Just how important is it to investigate any discrepancies, fraudulent activity, or omissions in a property title? Quite!

In fact, one-third of all title searches reveal some kind of title or public record issue that must be resolved prior to your closing.

Title examiners dig deep to determine whether a title is clear for purchase, so some buyers wonder why they would need coverage even after the title is purchased. It’s a good question, and the answer starts with one word: security.

Even the best investigations can miss details that are elusive or left out intentionally by previous owners. Title insurance continues to cover your title after its purchase for as long as you own the property.

Owners aren’t the only ones to buy title insurance either. Your lender will also purchase a title insurance policy in order to protect his or her loan amount should your claim over the title be challenged later on down the road.

However, a lender’s policy doesn’t cover the owner, which is why both should have their own coverage.

What Does Title Insurance Cover?

Title insurance will protect homeowners from a number of contingencies. These include:

  • Forgery
  • Fraud
  • Conflicting Wills
  • Undisclosed Heirs
  • Outstanding Liens Prior to Purchase

It’s important to note that most mortgage lenders require title insurance equal to the loan amount. Depending on pre-sale negotiations, the purchase of title insurance may fall upon either the seller or the buyer.

It’s a general rule that whoever is purchasing the title insurance can select who they buy it from, but you can negotiate this prior to agreeing to an offer. Often this will require you to share in the title insurance cost, but the ultimate decision is made between the buyer and seller.

Title Insurance in Naples, FL

It’s okay to have questions. In fact, we encourage you to ask them! Our highly experienced team is here to walk you through the process every step of the way, answering your questions and making 100 percent certain that you understand your policy.

To contact Action Title Services, you can give us a call at 239-262-2200, fill out our contact form, or stop by our office in Naples, Florida.