Owner’s Title Insurance – What Is It?

Owner’s title insurance is an insurance policy that insures to the new owner that there will be no other liens on the title that will affect his or her ownership. A good example of this is when a prior owner had work done on the house and the tradesman comes back years later claiming he was owed money and tries to file a mechanics lien. In this situation, the owner’s title insurance would protect the new owner. On an average the title insurance costs range depending on the purchase price of the home. This is a one-time upfront cost. The difference between a lender’s title insurance and an owner’s title insurance. The lender’s title insurance protects the lender up to the loan amount. The Owner’s policy protects the buyer up to the purchase price. An owner’s title insurance lasts as long as the policyholder or heirs has interest in the insured property.

A title is an individual’s legal right to ownership and possession of land. The title insurance policy is the policy that helps protect your ownership rights against any claim. The title can enable you to have protection against serious financial loss due to a defect to the property that is purchased. There are steps to getting a title insurance. The first step to getting a title insurance is to request insurance. Then there will be a search of the records from a title researcher who locates three records: name, tax and property information. Once the title researcher does his search of the records he will examine the title and provide an accurate report of the property title history. Then there will be an issuance of the binder.

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