How can Title Insurance protect Homebuyers?
Whether you’re purchasing a new or existing home, or refinancing, title insurance protects you against any problems affecting the title to your home.
The Basics of Title Insurance
There are two types of title insurance: the owner’s policy and the lender’s policy. The owner’s policy protects your property rights as
the homebuyer, whereas the lender’s policy insures the financial investment of the bank or lender. If someone else claims ownership of your property,
title insurance typically defends you legally and financially.
Here are some examples of problems with title:
-Liens against the property that serve as security for the payment of an obligation (e.g. mortgage liens, judgment liens for unpaid court judgments, federal
tax liens, state and local liens for failure to pay real estate taxes or assessments, mechanic’s liens to secure payment for property improvements,
liens for recovery of child support payments or, as in New York City, for unpaid parking tickets).
-Easements that have been created by contract or arisen through use or adverse prescription (e.g. rights of way for utilities, rights acquired by neighbors
because of a fence encroachment).
-Building or use restrictions contained in recorded plats, agreements or deeds.
-Claims arising out of bankruptcy.
When you refinance, you are obtaining a new loan, even if you stay with your original lender. Lenders will usually require a new title search and
lender’s policy to protect their investment in the property. Fortunately, homeowners don’t need to purchase a new owner's policy—the one you
bought at closing is good for as long as you or your family own the property. However, you may want to contact Bankers Title &
Bankers Closing Services to update your policy to reflect changes in your life.
Owner’s title insurance is a low, one-time fee based on the value of your home. For example, the typical owner’s title insurance policy
costs an average of 0.5% of a home’s purchase price. With a home being one of the largest investments you’ll ever make, it’s clear why getting owner’s title insurance is such a smart way to give yourself peace of mind.
We are passionate about protecting your largest investment and would love the opportunity to work with you on your home closing.
To order a new title order, click here.
For more information on Title Insurance, visit our Title Insurance 101 page!
More Homebuyer Tips & Information
The information provided above is from ALTA, the American Land Title Association helps educate homebuyers like you about title insurance so you can protect
your property rights. Check out www.homeclosing101.org to learn more about title insurance and the home
This advertising offers a brief description of insurance coverages, products and services and is meant for informational purposes only. Actual coverages
may vary.You may not be eligible for all of the insurance products, coverages or services described in this advertising. For exact terms, conditions,
exclusions, and limitations, please contact Bankers Title & Bankers Closing Services.