What are the different types of title insurance policies?
What does an owner's title policy cover?
Doesn't a lender's policy cover the owner/borrower?
What about an attorney's opinion?
Why do I need title insurance if the seller already has a policy?
The seller has a deed. Isn't that enough?
How much does title insurance cost?
How long does the coverage last?
Where can I get title insurance?
Basically, there are two types of title insurance policies: a lender's policy and an owner's policy. The lender's policy protects the lender's interest in the property which is security for its loan. The owner's policy protects the buyer's investment or equity in the property up to the face amount of the policy.Examples of coverage include (but are not limited to) fraud, forgery, wills not properly probated, incorrect legal descriptions, confusion due to same or similar names, defective deeds (such as a deed by someone who is mentally incompetent) and scrivener's errors.No. There may be a few types of title defects that the title insurance company would take care of under a lender's policy that may benefit the owner/borrower, but there are many situations that are only covered under an owner's policy, not a lender's policy. In addition, the insured lender is concerned about the balance of the mortgage. If the owner has any equity in the property at all, this amount is not covered under the lender's policy.An attorney's opinion is based on a search of the public records. Therefore, you are not insured if a "hidden" defect comes to light while you own the property or after you have sold the property, although you may still be liable for it.You need a policy to protect you against anything that the seller has done which would not be covered under the seller's policy. If a defect arises, and you do not have your own policy, you would need to sue the seller under the warranties in your deed, and the seller would then need to make a claim against its title insurance company. There may be many reasons why the prior coverage would not take care of your problem, including the fact that the seller's policy limits may not be sufficient to reimburse you for your loss.No. A deed is just an indication of ownership. It does not prove that your seller owns the property, nor does it insure you against the chance that others may claim an interest in the property.Unlike other types of insurance, a title insurance policy is purchased with a single, one-time-only fee. This charge is regulated by the Florida Department of Insurance.Title insurance protects you against problems that were created before you purchased the property or loaned money secured by the property. However, your coverage lasts as long as you have an interest in the property.Contact any licensed title insurance company or its agents. |
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