Index | Different Articles | What Does Title Insurance Pay For

What Does Title Insurance Pay For

When purchasing a house you must purchase several types of insurance coverage to protect your home and personal property. One of them is Title Insurance which protects against hidden hazards that may threaten your financial investment in your home.

Behind the notion of Title Insurance stands the idea that while purchasing your home you purchase not only the building itself or the land but also the title to the property. It is the right to occupy and use the space. Title Insurance serves to protect all kinds of hazards connected with any title defects, liens, a lawsuit attacking the title as it is insured, incorrect signatures on documents, defective recordation, forgery and fraud, encumbrances and judgments. Title Insurance polices are indemnity policies which are intended to protect against loss. One should bare in mind such an important thing that Title Insurance only covers losses arising from events that occurred prior to the date of the policy. Coverage ends on the day the policy is issued and extends backward in time for an indefinite period. An important feature of Title Insurance is that the protection lasts as long as the owner of the house has an interest in or any obligation with regard to the property. If it is sold, the lender will require the purchaser to obtain a new policy.