When purchasing a home, you will likely purchase various types of insurance that protect your investment. These policies can include homeowners insurance that protects you from losses due to fire, theft, wind damage, etc. This type of coverage is a commonly known aspect of purchasing a home that most individuals come to understand. That said, there is also something called title insurance that can protect the homeowner against hidden title hazards that may threaten their financial investment in the home. At Speedy Title & Escrow Services LLC, we are one of the best Michigan title insurance companies and would like to educate you on this little-known topic, as we provide you with four things you may not have known about title insurance!
4 Things You Didn't Know About Title Insurance
4 Things You Didn't Know About Title Insurance
What Is Title Insurance?
When purchasing a home, it may feel as if you are simply buying the actual building or the land. You are actually buying the title to the property, which gives you the right to occupy the space. A record of this transaction is generally filed in public archives, along with any events that may affect the ownership of said property. Title insurance companies help search these records for any hazards that may limit your use and freedom of the property and attempt to solve them. In essence, title insurance protects you against losses from hazards and defects that already exist within the title and is purchased with a one-time premium.
Two Kinds of Title Insurance
Lenders or mortgage protection — lenders may require mortgage title insurance as security for their investment in real estate as a form of investor protection. If you provide title insurance, lenders may be willing to make mortgage money available in distant locales where little about the market is known.
Owner’s coverage — This policy lasts as long as the holder or heirs have interest in the insured property, which may even be after the property is sold. This protects you from events that occurred before you purchased the home or land.
You Can Buy Title Insurance After Closing
Yes, you can buy title insurance after closing in on a property. This is still beneficial, as it can protect you if issues arise. That said, it is encouraged to purchase title insurance beforehand because many errors that come up after closing may not be covered. Within the gap of buying the home, you can take on many risks. Why not have some peace of mind and purchase the policy sooner rather than later!
What Your Premium Pays For
Risk elimination before insuring gives you the best chance to avoid title claims and losses. A title agent examines public land records to determine if the property is insurable. This evidence is reviewed to fully report all “material objections” to the title, letting the homeowner know of any possible breaches affecting their ownership. These problems are then resolved, helping keep the homeowner protected and free to use their property as needed!
We at Speedy Title & Escrow Services LLC hope that you have learned a thing or two about title insurance! If you require a policy, rest assured, knowing that we are one of Michigan's best title insurance companies to work with. Contact us today!