Buying a new home is a huge investment that is worth protecting. With title insurance, both lenders and borrowers will be protected from any issues and defects associated with the home’s title. There are many benefits to purchasing a policy, but what is title insurance exactly? In this blog, we are going to discuss its purpose, the benefits of title insurance, and the different types of coverage. 

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What is Title Insurance? 

The purpose of title insurance is to protect the insured against losses that occurred in the past before you even owned the home. During a home buying process, a title insurance company, such as Express Title, will perform the title search and examination that will provide the basis for the title insurance policies that will be issued to you and your lender.  

Title insurance is not required for homeowners, but it is often required for lenders. Even though it is not required for homeowners it is recommended, because without it the buyer will be responsible for any legal costs and may potentially lose the property.  

Types of Title Insurance  

Owner’s Policy:  

  • Not required but recommended 
  • Protects the equity of the property 
  • Protects the buyer 
  • Lasts for as long as you or your heirs own the property  

Lender’s Policy:  

  • Required by most banks and mortgage lenders 
  • Protects lenders until the mortgage is paid off 
  • Expires once the mortgage is paid in full 

Benefits for Buyers with Title Insurance 

Being a homeowner without title insurance is risky as you may not be protected from claims against ownership of the property and may lose the investment. With an owner’s title policy, homeowners also receive the following rights:  

  • You would be able to use the property as you wish 
  • Be free from debts or obligations that were not created or agreed upon you  
  • Be able to freely sell or pledge your property as security for a loan.  

It is recommended to invest in title insurance because it will protect the buyer if any title defects occur in the future. Buying title insurance will help you have peace of mind knowing that you will be protected from expenses and legal suits.  

Types of Claims or Risks Covered by Title Insurance 

At Express Title, we offer two levels of coverage: Standard and Enhanced. 

Standard Coverage Covers: 

  • Forgery and Impersonation 
  • Lack of Competency, Capacity, or Legal Authority of a Party 
  • Deed not joined in by a Necessary Party including 
    • co-owner, heir, spouse, corporate officer, or business partner 
  • Undisclosed Prior Mortgage or Lien 
  • Undisclosed Easement or use Restriction 
  • Erroneous or Inadequate Legal Descriptions 
  • Lack of Right of Access  
  • Deeds not Properly Recorded 

Enhanced Policy will Cover all the Risks of Standard Coverage Plus: 

  • Off-Record Matters – claims for adverse possession or prescriptive easement 
  • Deed to Land – buildings encroaching on land of another incorrect survey 
  • Silent Liens – such as mechanic’s or estate tax liens 
  • Pre-existing violations of subdivision laws, zoning ordinances, or CC&R’s  
  • Post-Policy Forgery 
  • Forced removal of improvements due to lack of building permits 
  • Post-policy construction of improvements by a neighbor onto insured land 
  • Location and Dimensions of Insured Land 

Protect Your Home with Title Insurance 

Homeownership is a monumental event and an investment worth protecting. At Express Title, our team provides knowledge and expertise to ensure that your home and family are protected now and into the future. If you are interested in learning more about title insurance, please contact us today!