April 29, 2016

Title Policies

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Whether you are selling your home through a realtor or by yourself, you may choose to obtain a title policy.

Title insurance protects you and your lender if someone challenges your title to your property because of title defects that were unknown when you bought the policy. Most lending institutions will not loan money to purchase a house or other property unless you buy a “mortgagee” title policy.

This policy protects the lender’s investment by paying the mortgage (loan amount) if a title defect voids your title. When you buy a house, the title company also issues an owner’s policy, unless you reject it in writing. The owner’s title policy protects you against the covered risks set out in the policy.

Your title policy tells you how to file a claim and describes your coverage, including limitations, exclusions, exceptions, and special conditions. Click HERE to use our Title Policy Calculator.

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