Why Title Insurance?
A Must for the Homeowner
PROTECTING YOUR LARGEST SINGLE INVESTMENT
Owning real estate is one of the most precious values of freedom enjoyed in this country. When you decide to buy a new home, you want to be sure the property will be yours and that no one else will have any liens, claims or encumbrances against your home other than your agreed to mortgage.
Title insurance is not as well understood as other types of home insurance, but it is just as important. You see, when purchasing a home, instead of purchasing the actual building or land, you are really purchasing a title to the property - the right to occupy and use the space. That title may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss. Title insurance protects against these types of hazards.
Other types of insurance that protect your home focus on possible future events and charge an annual premium. On the other hand, title insurance portects against loss from hazards and defects that already exist in the title and is purchased with a one-time premium.
LOAN POLICY - LENDER
Most lenders require mortgagee title insurance as security for their investment in real estate, just as they may call for fire insurance and other types of coverage as investor protection. A loan policy insures your lender's security interest against loss due to defects in your title that were not discoverred at the time of sale. The loan policy offers no protection for the homeowner.
Just as lenders want security with their title policy, you should protect the equity in your new home with a title policy. Owners title insurance lasts as long as you, the policyholder - or your heirs - have an interest in the insured property. This may even be after you have sold the property. For a low one-time premium, you can receive the protection of a title insurance policy against "hidden risks" or undiscovered interests.
WHAT DOES YOUR PREMIUM REALLY PAY FOR?
Title insuring begins with a search of public land records affecting the real estate concerned. An examination is conducted by the title agent or attorney on behalf of its underwriter to determine whether the property is insurable. The examination of evidence from a search is intended to fully report all "material objections" to the title. Frequently, documents that don't clearly transfer title are found in the "chain" or history that is assembled from the records in a search. Through the search and the examination, title problems are disclosed so they can be corrected whenever possible. However, even the most carefulpreventative workcannot locate all hidden title hazards.
THE OWNER'S POLICY PROVIDES:
- PROTECTION FROM FINANCIAL LOSS due to covered claims that may be asserted against the title to your home, up to the face amount of the title policy.
- PAYMENT OF LEGAL COSTS if the title insurer has to defend your title against a covered claim.
- PAYMENT OF SUCCESSFUL CLAIMS against the title to your home covered by the policy, up to the face amount of the policy.
TITLE INSURANCE PROTECTION
Some common hidden risks protected under a title policy:
- FALSE IMPERSONATION of the true owner of the property by your seller or the other persons formerly in title
- FORGED deeds, releases and other documents
- DEEDS BY PERSON OF UNSOUND MIND
- DEEDS BY MINORS
- INVALID DOCUMENTS executed under expired power of attorney
- INVALID DEEDS delivered after the death of the grantor
- DEEDS BY SUPPOSEDLY SINGLE persons but actually married
- LIENS FOR UNPAID ESTATE INHERITANCE and gift taxes against prior owners of your home
- UNRECORDED EASEMENTS - right of way
- UNDISCLOSED HEIRS of former owners of your home or the land on which it is situated
PEACE OF MIND
Once purchased, the title insurance remains in effect for as long as you own your home. Title insurance adds security and peace of mind to home ownership.
For further information, we suggest you contact our Preferred Partner - R.A.P. Agency, LLC; 2080 Linglestown Rd., Suite 201; Harrisburg, PA 17110. Phone: 717-658-5746, ask for Patricia Carbaugh she is prepared to assist you with all your title insurance needs.