What is Title Insurance?
If you’re buying a home, title insurance is a policy that protects your investment and your property rights. If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.
There are two different types of title insurance: An owner’s policy and a lender’s policy.
- The owner’s policy protects your property rights for as long as you or your heirs own the home.
- The lender’s policy is almost always required by the lender and only protects the lenders financial interests. The lender requires that you pay for the lender’s policy. Each new lender will want a lender’s policy that is specific to their transaction.
Click here to download our title insurance owner’s policy coverage chart.
Why Should I Purchase Owner’s Title Insurance?
Purchasing owner’s title insurance is a smart decision because it’s the best way to protect your property from future legal claims. Milestone Title strives to resolve all known title defects to your property prior to closing. However, we realize that some situations occur that home-buyers, real estate agents and closing professionals cannot foresee.
An Owner’s Policy of Title Insurance provides you with peace of mind by removing the hidden risks of acquiring a piece of property whose legal history is unknown to you.
Common Title Issues
- Errors in Public Records
- Unknown Liens or Judgments
- Error by Clerk in recorder’s office
- Undiscovered Will
- Unknown Easements
- False Impersonation of Previous Owner
Common Title Issues
- Undisclosed Tax Liens
- Illegal Deeds
- Misapplied Tax Payment
- Missing Heirs
- Boundary/Survey Disputes
These are just a few of the possible hidden title defects that could cause you to either loose your home or make it difficult or impossible for you to sell your home in the future.
Click here to download more information about the hidden risks that could affect your property rights.
We offer our customers the most comprehensive title insurance coverage available as our standard form of title insurance, the ALTA Homeowner’s Policy. The ALTA Homeowner’s Policy was created to benefit the buyer, seller and real estate agent involved in a real estate transaction. Coverages not traditionally offered by title insurers are included in this policy. The ALTA Homeowner’s Policy protects insureds from certain covered risks that took place either before and/or after the policy date. One of the many added benefits is that the policy amount automatically increases each year as a hedge against inflation.
We also offer a basic title insurance policy, the ALTA Owner’s Policy which offers very limited coverage at a slightly lower rate. See the Owner’s Title Insurance Coverage Comparison Chart for details.
What Does Owner’s Title Insurance Cost and When Do I Purchase?
Title insurance is a one-time premium paid for at the time of your settlement and the cost is low relative to the value of your home. The typical owner’s title insurance policy costs around 0.5% of the home’s purchase price. Your policy will protect you and/or your heirs even after you sell the property or pay off any loans attached to the property.