What Does Title Insurance Cover?

Title insurance is a policy that protects a home buyer and his lender from claims associated with the ownership title of a property. It ensures that you are compensated if you lose ownership of a property to ownership claims that your seller did not reveal to you during the home buying process.

If you are planning to buy a property in Southwest Florida, consider purchasing a title insurance policy during the home buying process. Heights Title Services LLC is a seasoned insurance agency that works with first-time homebuyers, commercial property, and independent real estate agents.

What does title insurance cover?

With title insurance, the homeowner and the lender are protected from any unforeseen title issues that may be associated with a property. Here are some of the risks that title insurance covers:

1. Legal claims

Title insurance covers the cost of legal fees related to establishing the rightful owner of your property. If issues arise concerning title ownership, then your insurance company can decide to pay for losses associated with the claim or defend your title ownership against the claim in a court of law. In case the title company defends you in court, then your insurance policy will cover the legal fees.

2. Losses and damages from liens

Contractors often place liens on properties when beginning construction or remodeling work. They will invoke these liens in case they are not paid upon completion of the project. However, some contractors usually fail to remove the liens after successful payment of their work on a property.

Title insurances will protect you from the losses incurred due to unreported liens. A title company will be able to discover all of these undisclosed liens during the title searching process, which is done before the issuance of title insurance. They will inform you of any unreported liens they find on a property and provide advice on the best action to take.

3. Losses and damages from title and ownership defects

Title companies in SWFL such as Heights Title Services Inc. will conduct a thorough research process on public records for any title or ownership defects before providing title insurance. During the title search process, the title companies may discover issues such as unpaid property taxes or potential for another person to claim ownership of property. Having a title insurance cover protects from debts that you are not obligated to pay and prevent any attempt to remove your ownership of the property.

4. Lender Protection

Title insurance protects the lender from losing their investment. Having title insurance will enable the lender to foreclose on your property if you default on a payment due to ownership issues.

5. Issues with forgery

Title insurance protects you from many other issues related to ownership of the property that may not have been disclosed during the buying process. They can include, forgery, undisclosed heirs, improperly recorded deeds among many others.

Heights Title services LLC is an insurance firm that conducts title searches and grants title insurance policy to its clients. Contact us today to get the best deals on title insurance cover in South West Florida.