What Does Owner’s Title Insurance Cover? Why You Need It?
Owner’s title insurance is a crucial safeguard in real estate transactions, protecting property buyers from potential legal issues related to the title of the property they purchase. Traditional Abstract provides owner’s title insurance in Lehigh Valley, Bethlehem, PA, Allentown, Easton, PA, Nazareth, PA and surrounding areas.
This is a breakdown of what it covers and why it’s important:
Coverage:
Title Defects: Owner’s title insurance protects against any defects or issues with the title that were not identified during the title search. This includes errors in public records, undisclosed liens, or mistakes in deeds that could affect ownership rights.
Fraudulent Claims: It safeguards against fraudulent claims, such as when someone impersonates the previous owner to claim ownership or when someone forges documents affecting the title.
Unpaid Taxes and Liens: It covers issues arising from unpaid property taxes or liens from previous owners that could affect the new owner’s clear title to the property.
Unknown Heirs: It protects against claims from unknown heirs of previous owners who might come forward to assert ownership.
Legal Defense Costs: If a covered claim arises, title insurance often provides legal defense against the claim and helps cover associated costs.
Importance:
Peace of Mind: Buying a home is a significant investment, and owner’s title insurance provides peace of mind that your ownership is protected against unforeseen legal issues.
Protection Against Historical Issues: Title issues can sometimes be the result of mistakes or problems from the distant past, which might not be uncovered in a standard title search. Title insurance covers these historical problems.
Financial Protection: The financial implications of title disputes can be substantial, including legal fees and potential losses from the inability to sell the property. Title insurance mitigates these risks by covering costs related to resolving disputes.
One-Time Premium: Unlike other types of insurance that require ongoing premiums, owner’s title insurance involves a one-time payment made at closing, covering the policyholder for as long as they or their heirs own the property.
In essence, owner’s title insurance is a protective measure that ensures your property investment is secure from unforeseen title issues, giving you financial protection and peace of mind throughout your ownership. Would you like to discuss? Please give us a call, or email us!
