Why do I need Title Insurance and what is it?
You need title insurance to protect possibly the most important investment you'll ever make - the investment in your property. With a title insurance policy, you, as owner, have an indemnity contract with an insurance company that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy.
How can there be a title defect if the title has been searched?
Title insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search.
What does title insurance protect against?
Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title:
What protection does title insurance provide against defects and hidden risks?
Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured's losses. For a one-time premium, an owner's title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.
What does this mean to me?
The peace of mind in knowing that the investment you've made in your property is a safe one.
Should I shop around for the best rates?
Title insurance rates are set by the Title Insurance Rating Board of Pennsylvania (TIRBOP), based on the value of the property (for an owner's policy) or the value of the loan (for a lender's policy). Title agencies are required to charge those set rates and cannot offer rebates or discounts. What you really shop for when looking for a closing company is friendly, efficient service, timely responses to your questions, and a smooth closing process.
I paid for title insurance when I purchased my property. Why do I need another title policy on my refinance?
Each lender requires that their loan be covered by a title insurance policy. The owner's policy you received when you purchased your property is good for as long as you own the property. Each subsequent lender will need a new title policy, based on the amount of the loan that is being insured on your refinance.
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