Learn the basics about business title insurance and why it is necessary

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Did you know that the insurance business is an ever-expanding industry because there is no shortage of things to cover? The title insurance business is already a $15 billion industry, and the growth is projected to increase till 2020. This tremendous boost can be attributed to the increase in the median home value in the U.S.  If you are thinking about buying a property for your business sometime in the future, title insurance is something you should know and understand.

Title insurance: the overview

In case of any traditional insurance, the protection is basically against any future losses. E.g., car insurance will protect against any future accidents or medical insurance which is essential to protect against future health problems. The title insurance, however, is very different. Title insurance protects you against claims for past occurrences. To protect your interests, log in to https://sunnysidetitle.com.

Types of title insurance

You can opt for two different types of title insurance depending on your requirement. The first is for the real estate owner and the second is for the lenders. The lenders require the title insurance to secure the security interest for the property. And, the property owner needs one to protect the investment and the property.

What is the protection on offer?

By investing in title insurance, the first step you will take is the extensive title search of the property. With this search, you minimize the liability for the property owner. Any title issue with the property is discovered with this extensive title search. Title insurance will also defend you against litigations and challenges against the validity of ownership of the property. 

The general cost for title insurance

Traditional insurance requires you to make monthly payments as premiums. However, title insurance requires one-time payment. The actual cost for the insurance varies depending on the valuation of the property and the state of residence. For the homeowner, the coverage is around $830 and the for the lender it costs $540.

Some of the standard title insurance claims

Here is a list of the common types of title insurance claims:

  • Public record errors
  • Liens that have remained undiscovered previously
  • Heir omissions
  • Fraud cases

Specifics about the claims

You will work with a title examiner who will make sure of the title to analyze the ownership chain for the property. The property needs to pass hands through sale, through the will or a gift to the intended person. This title check will also ensure that there aren’t any legal claims and issues against the property. In case of a lien or a mortgage, the title cannot be transferred. To avoid all such hassles, it is essential that you invest in title insurance as soon as possible.

You have to keep in mind that title insurance is intended to protect your interests. This is true especially for the home purchaser since it is the only way to detect a property claim or problem before it appears. It is a great idea to spend the $830 for title insurance than facing claim issues down the line.

April 10, 2019 · Tim Kevan · Comments Closed
Posted in: Uncategorized