What is Title Insurance, and Why Do You Need It?

title insurance

Title insurance is one of the most important yet least understood types of insurance. It’s different than auto, homeowners, or life insurance in that those companies base your ‘yearly’ premiums on an actuarial casualty loss basis.

This means that your home, auto, or life insurance company is betting on the fact that they will payout for a loss at some point. Title insurance protects you if there is a problem with the title to the property. Title insurance takes the transactional risk out of real estate by guaranteeing your title is free and clear. As a leading title insurance agency in New Jersey, allow us to answer some of the questions that you may have regarding title insurance.

What is title insurance?
Most don’t realize how many people are involved in a real estate transaction which is why you should always collaborate with an experienced title insurance agency. From a title encumbrance to a slew of other potential issues, would you know what to do to fix the situation? Realtors, title agency employees, surveyors, county and state records departments, superior court, and tax recording are all possible touchpoints on a title transaction.

Any time the title is handled or edited, there is a chance for error. Because of the search work your title agency obtains, they insure there will be no claim. However, If a claim is made for any reason as to a lien or objection to the title, you will hand that claim to your title company to defend instead of you having to hire an attorney to resolve the title problems.

The insurance is issued via underwriters through the title agency. The nice thing about title insurance is that you will only pay for title insurance once and is in affect for as long as you own your property!

What does title insurance cover?
Title insurance policies can protect you if there is a problem with the title to your property. For example, if someone challenges the property ownership or boundary lines, if there is a problem with the title that results in a financial loss, the title insurance policy will cover the costs.

Title insurance policies are also beneficial for homeowners refinancing or taking out a home equity loan. The lender depends on the title agent insurance title which includes a clear and correct closing statement with all appropriate adjustments done accurately.

How do I get title insurance?
The homeowner will need to purchase a policy from a title company to get title insurance. The policy will protect the homeowner from any title problems that may arise. Use your professionals to help guide your title insurance process. Your real estate agent or lender will be able to help you select the appropriate title company to make your real estate transaction as smooth and error-free as possible.

Title insurance can protect you against financial losses that occur due to problems with your title. At Cotes & Hay, we have been protecting property owners like you for over 50 years. We have heard, done, and seen it all. Let us help you make your title transaction quick, accurate, and complete. Whether it is a standard run-of-the-mill title or something more complicated, we have the team and experience to help you. Contact us today to see what we can do for you.