Why Title Insurance?
Title Insurance provides coverage against a loss that could result from liens, encumbrances, or defects to the title of a property. Lenders will typically require a title insurance policy when issuing a mortgage loan to a borrower. Owners have the option to purchase a policy that will protect their interests.
STANDARD VS. ENHANCED TITLE INSURANCE
There are two types of Owner’s Title Insurance policies: standard and enhanced. The standard, sometimes referred to as basic policy, covers all of the basic potential problems discussed above including, but not limited to, forgery, fraud, prior claims of ownership, judgments, liens, unpaid past property taxes and mechanic’s liens. The enhanced policy, also known as the Eagle or Advantage policy, while costing more, includes coverage not found in the standard or basic policy. Some of the added coverage includes protection for forgery occurring AFTER the policy issue date, removal of encroaching structures, removal or remedying of structures that were constructed without proper building permits or that do not comply with local zoning laws, management of restricted access to and from your property, and, importantly, inflation protection that increases your coverage by 10% per year for the first five years up to a maximum of 150% of the original purchase price.
Champion Tip: You can save approximately 30% off the cost of your Owner’s Title Insurance if the seller purchased the home within the past 10 years and can provide Champion Title with a copy of their Owner’s Title Insurance policy. Be sure to have your agent check with the listing agent!
In all my years of being a Real Estate Agent I only had one buyer decline title insurance. A Home purchase is your biggest investment and you should make sure you protect it and yourself. Chances are you will never need title insurance but if you do not have it and need it you would really be upset.
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Claudia S. Nelson
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