One of the most important purchases that you can make when buying a home is investing in a title insurance policy. For new homebuyers, title insurance can be rather confusing, which makes learning the answers to questions concerning title insurance a worthy investment of your time.
Do All Title Insurance Policies Offer The Same Coverage?
Title insurance may be an afterthought to many homebuyers, which can cause them to fail to take the time to closely review the protections offered by the potential policies. While title insurance will typically always protect you in the event of a lien or other direct claim to the property, many policies offer additional protections as well. Protecting you against the results of inaccurate surveys and incomplete or falsified property disclosures.
What Happens If There Is A Problem Once The Purchase Is Finalized?
In the event that there is a problem with your property's title or other covered issues, you will need to immediately contact your title insurance company. Typically, these companies will employ a couple of different strategies for protecting their clients against these unfortunate real estate complications. In instances where legal expenses will be required to correct the matter, the insurance company may send their attorneys to handle the matter for you. When there are direct financial damages, such as a lien, the insurance will pay out of the required amount to lift the lien from the property.
How Long Will Your Title Insurance Policy Provide Protection?
There are some homeowners that may resist buying title insurance due to concerns that they will have another premium that they must pay. However, there is only a one-time cost for purchasing this type of insurance, and it will last for as long you own the property. Additionally, this insurance is usually transferable to heirs, which will allow your loved ones to enjoy the protection of this insurance after you have passed away.
How Is A Title Insurance Policy's Premiums Determined?
One of the key factors in determining the cost of your title insurance policy will be the value of the property. Not surprisingly, more valuable properties are likely going to be more risky to insure, which will result in their premiums being higher. Additionally, older homes will typically have higher premium costs than new construction. This results from the fact that the older home will have had more time to develop title issues or disputes. Luckily, your quote for coverage from a real estate title insurance provider will provide an itemized list of the factors that contributed to the decision regarding the premium.