As the cost of purchasing a home continues to rise, home buyers re increasingly seeking new ways to reduce costs. Title insurance is one of the methods buyers use to protect their property rights. However, new buyers, particularly those purchasing a home for the first time, might consider title insurance to be a new concept since it is different in process and scope from other types of insurance.
Acquiring title insurance in Florida is part of purchasing a property. Title insurance safeguards the tile of your home; the right to own, hold, utilize, manage, and dispose of your property. Its benefits last years after you have settled into your new home.
While most insurance policies protect you from possible future occurrences, title insurance protects you against any issue that may surface after closing on your home that was not previously discovered. Examples of these problems include ownership claims from a previous owner and unpaid taxes, which can put your investment in jeopardy.
Here are five essential things to know about Title Insurance in Florida:
During the process of title search and examination, title insurance can identify hindrances, credits, and defects in the property acquirement process that could negatively impact on your property ownership interests. While the lender needs it, you should not confuse it with the homeowner’s insurance, which is also required by your lender during closing. Homeowner’s insurance protects against possible future accidents like fire, while title insurance protects against past events that might have an impact on the ownership of a home, like an unreleased mortgage.
In the United States, the rights of homebuyers to choose their insurance providers for various settlement services, including title insurance, is protected by the Real Estate Settlement Procedures Act. So, you are free to work with any title insurance company.
The title insurance premium is a one-time payment. The policy covers the property as long as the insured individuals, or their successors, hold an interest in the assets.
If your title insurance is convicted, professionals in the field of title insurance use public property records to determine and, if possible, remedy problems from the past that might affect the ownership of the house. The title insurance policy covers you against impediments, perquisites, and defects that are not reported in the plan and disclosed by the title examination.
If you are using a mortgage to buy your new home, your lender will need a title insurance policy that is designed to protect their interests in the property. That is known as a loan policy. As the buyer, you will also need to buy an owner’s title insurance policy to protect your interests in the property. This policy is subject to exclusions, exceptions, requirements, and conditions. So, you should consult with a title insurance expert to get more information about the owner’s policy.
Title insurance protects you if the right to ownership of your home gets challenged. Getting the policy means you will have an insurer standing with you if someone challenges your homeownership. Contact Heights Title Services today to secure your property.