Certain Things You Need To Know About Title Insurance
Posted by ANNA WILSON on May 12th, 2021
Traditional insurances protect the insured individuals against future losses. For instance, car insurance covers the drivers from future mishaps and expenses that come with them, and a health insurance policy takes care of future medical bills and expenses. But, Title insurance is different from these traditional insurances as it helps the insured against claims of past events.
What is Title Insurance?
Title Insurance is a unique form of insurance or indemnity that can protect lenders and buyers from any financial loss caused by defects in the title of a property. Lender’s insurance is the most common type of title insurance, and the borrowers purchase this to protect the lender. This is the most sought title insurance from any Investors Title Insurance Agency in NJ. The other type is owner’s title insurance, and the seller pays this to protect the buyer’s equity in the property.
By getting title insurance, the lenders and buyers protect themselves from loss due to defects in title to the property, and the most common claims filed against a title are back taxes, conflicting wills, and liens. When a person invests in title insurance, he can cover administrative fees for deep searches of title data and protect claims for past events by paying a one-time fee.
Refinancing Title Insurance
If you refinance your home, your old home loan is paid off, and the lender’s title expires. Title insurance generally protects the insured property when there is new construction or property resale and refinance transactions. Each time a property is being sold, the new owner can buy a policy to protect his investment. But in transactions involving a lender, a title insurance lender’s policy is always required. The refinancing title companies in NJ help these new owners and lenders refinance title insurance to secure their private financings.
It is essential to get a lender’s policy with your home refinance. You can rest assured that your lender is not trying to pull one over you. Even if it is the same lender, same property, and the same borrower involved in the refinancing, still you must get refinancing title insurance. Even if it was some months ago, a lot could have happened since you bought the home. Legal judgment or new liens could have been placed on your property title, and title defects could have emerged. Without refinance insurance, the lender processing a refinance can be exposed to significant risks.
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About the AuthorANNA WILSON
Joined: May 12th, 2021
Articles Posted: 17
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