Homeowner Property Title Insurance

Home property title insurance usually is required by the lender to protect the lender against loss resulting from claims by others. In some states, attorneys offer homeowner property title insurance as part of their services in examining and providing a title opinion. The attorney's fee may include the premium. In other states, a company or agent directly provides the title insurance. New house owners should be aware that the seller may not require the buyer, as a condition of the sale, to purchase this policy from any particular company. Usually, the lender will require a policy from a company that is acceptable to it. In most cases the new house owner can shop for and choose a policy that meets the lender's standards and their own personal satisfaction and price.

To save money on these types of policies, compare rates among various companies. The buyer should ask what services and limitations on coverage are provided under each homeowner property title insurance policy so that a knowledgeable decision can be made about coverage purchased at a higher rate that may be better for their needs. However, in many states, premium rates are established by the state and may not be negotiable.

If the buyer is purchasing a house that has changed hands within the last several years, they should be sure to ask the insuring company about a "reissue rate," which would be cheaper. Reissue rates are for a transfer of property with a short time of a purchase of a property. That first transaction was covered by home property title insurance, so if sold maybe six months later, chances are that nothing went wrong during that time. So the risk of a claim against the title is minimal. For this reason, insurance companies can offer a "re-issue" rate; a discounted price (usually about 40%) on the insurance policy. If purchasing a newly constructed house, the owners need to make certain the homeowner property title insurance covers claims by contractors, known as "mechanics liens."

The policy differs from most in that it covers past events. The company will defend any claim from past events on the title and pay for any damages (usually the value of the property). The policy does not cover claims based on events that occur after the policy is issued. Also, the home property title insurance usually will contain many exceptions, such as claims based on information undisclosed to the insuring company. Thus, if the seller is aware of any potential problems that might lead to a claim, their failure to disclose this information to the insuring company will lead to a denial of a claim based on those events. Therefore, those who are purchasing a house should seek God, who is "the light [that] shineth in darkness" (John 1:5) to expose any of these things.


Ten years and counting | Happy BirthDay Google | What would you ask Senators McCain and Obama? | Announcing the Android 1.0 SDK, release 1

Add to: File Insurance Business article Teen Photo Images