June 22nd, 2023 8:54 AM by Sam Kader MLO130505
Our Homeowner's Policy protects against: Title insurance covers you if some long-forgotten ex-spouse of the seller comes forth claiming that someone forged her signature of the deed. Lender policy only concern over the property extends only to the amount of money ? you owe and it protects against unpaid real estate taxes or other liens on the title. As you pay off the mortgage, the amount of title-insurance under the lender's policy will decline. Buyer's Title insurance is usually paid by the seller and lender's policy is usually paid by the homeowner. With a homeowner's policy, you are covered for the value of the property and coverage endures as long as you own it. Standard policies cover threats to the title that occur before you buy the property. Title insurers now are offering enhanced policies that cover homeowners for a number of threats to their title that could arise in the years after that purchase. With an owner's policy you're covered for the value of the property and coverage endures as long as you own it. Standard policies generally cover threats to the title that occur before you buy the property. Title insurers now are offering enhanced policies that cover homeowners for a number of threats to their title that could arise in the years after the purchase. For example, if someone were to forge your signature on a deed or illegitimately place a lien against your property; if you were forced to remove a fence because it was built on the wrong side of the property line; or if you found yourself with a clouded title because some failed to record release of an old lien when you refinanced a mortgage. When you ask for a price quotes from settlement agents or title companies, ask whether the premium is for a standard or extended policy.
Whenever you buy a home or refinance a mortgage ask for a discounted "reissue rate" on the new policy. You do not need a new owner's policy if you bought one before, that old policy remains in effect and the "reissue" discount could save about 30 percent on the lender's coverage, if the old policy was taken out less than 10 years ago. Here are some examples afforded by having Title Insurance:
- Cannot use land for SFD due to zoning or restrictions- Unrecorded Lien by the HOA- Unrecorded Easement(s)- Interests arising by deeds fictitious parties- Pay rent for Substitute Land or Facilities- Protection against Inflation- *Building Permit Violations - Forced Removal- *Subdivision Map Act Violations- *Zoning Violations - Forced Encroachment- *Boundary Wall or Fence Encroachment- Post-Policy Defect in Title- Post-Policy Contract or Lease Rights- Post-Policy Forgery- Post-Policy Easement- Post-Policy Limitation on use of land- Post-Policy Damage from minerals or water extraction- Post-Policy Living Trust Coverage- Post-Policy Encroachment by neighbor other than wall or fence- Enhanced Access - Vehicular and Pedestrian- Damage to structure from use of easement- Post-Policy automatic increase in value up to 150%- Post-Policy correction of existing violation of covenant- Post-Policy prescriptive easement - Incorrect street address- Map not consistent with Legal Description- Coverage for spouse acquired through divorce- Violations of Building Setbacks- Discriminatory covenants- Issues concerning adoption of children- Insurance coverage lasts as long as you, the policyholder - or your heirs - has an interest in the insured property. This may even be after you have sold the property.