What is Title Insurance?
You may be asking yourself, what exactly is Title Insurance? And what does it cover? If you are a first time home buyer, there are specific aspects of the process that may be foreign to you. Title insurance, is one of those items, that unless you need to use it, you don’t understand the importance of it. More likely than not, the seller or the buyer will go with the title insurance company that is recommended by their lender, attorney or even real estate agent, to avoid the hassle of finding one themselves. Though truly, you should take the time to educate yourself in the process and choose a company with YOUR best interests in mind!
What Exactly Is Title Insurance?
You might be wondering what title insurance exactly is and how you benefit from having it. Title insurance came into existence back in 1853 with the establishment of the very first company and since then the industry has significantly grown. Title insurance is primarily only used within the United States, however there is a small percentage of policies for properties outside the US. This is mainly due to the local governments, within the US, method of record keeping. There is always a chance for discrepancies and other unforeseen issues that could arise by not having title insurance. It ensures that you, the policy holder, has a right to a claim for any damages if an issue should arise.
What Does Title Insurance Cover?
The policy protects you, the buyer or lender, from any issues that may arise regarding ownership of that title. Some of those issues could include defects, liens, and taxes owed, amongst other issues. The exact aspects of coverage depend upon the policy, exceptions and endorsements. There are two different types of policies that depend on the relationship to the property. The first is the owner’s policy, which provides coverage to defend their rights to the said property or be reimbursed for their loss. The other is a lender’s policy, which insures the lender has a valid, enforceable lien on the said property and it insures that the lenders lien is in the position designated by their instructions.
Finding the Best Title Insurance Company for You
You want to find a trustworthy company that will be able to protect your investment, along with being able to walk you through the process step by step and answer any and all questions you have.
Here at Title Junction, we have been serving the residents, not only of Lee County, but the entire state of Florida, since 2005 and are underwritten by a company that has been in business since 1941. Our company has been built on protecting our client’s investment and giving them the real estate /closing relationship they deserve.