FAQ About Title Insurance in Ohio

4 Important Title Insurance Questions and Answers You Should Know

We know the home buying process is not always simple and easy to understand. You don´t need to be an expert to be able to safely and efficiently buy a home, but it always helps to have the help of the experts. At Patriot Title Agency, Inc, we are always here to help and today we want to answer some important questions about title insurance.

How Is Title Insurance Different From the Other Types of Insurance Policies?

Title insurance policies are different from other types of insurance in several ways. Other insurance policies protect against the possible destructive events that may happen in the future but title insurance protects against problems that occurred in the past but may be discovered later on. Another important difference is that unlike most insurance policies that require a monthly payment or a premium payment every so often, title insurance is only paid for once and it covers you as long as you hold interest, in the property. This could be even be passed down to your heirs.

What Does Title Insurance Cover and What Does It Not?

Well, this does depend on the type of title insurance coverage that you obtain. However, in general, title insurance will cover against any defects in the title that were undisclosed or unrecorded previous to your acquisition of the property. This also means that title insurance will usually cover you against fraud. So if for any reason a con-artist got away with selling you a house that was not his to actually sell, ;the title insurance policy would back up your investment. Title insurance covers most surprises that were not covered in the title search but it will not cover events that occur after the policy is issued. It will also not cover you against anything that you had previous knowledge of. There is also another type of title insurance coverage that most title companies offer. This is called extensive coverage and it may cover against other problematics that a regular policy would not protect you against. Learn more about title insurance coverage in our previous post here. For more detailed information on what type of coverage you can get and how title insurance protection works, contact us today.

What Are the Two Types of Title Insurance Policies You Need?

It is also important to note that there are two main types of title insurance that should be acquired when buying a home. The first is the lender´s title insurance and this is mandatory in most states. Almost all lenders will require that you obtain a lender´s title insurance that will protect your mortgage for the amount that the lender is providing. However, this does not necessarily protect your personal investment. You need owner´s title insurance as means of protecting yourself for the amount you invested. Otherwise, in the event that you have to file a title insurance claim, lender´s title insurance will only cover your lender for their amount. Many times obtaining owner´s insurance is quite inexpensive, especially if you get it from the same company that is issuing your lender´s title insurance policy. When buying both insurance policies from the same company, they only have to run the title search and other inquiries once to issue both policies, which cuts down their cost, passing down the savings to you.

Who Pays for Owner´s Title Insurance the Buyer or the Seller?

This more than anything depends greatly on the common practice of each area. It varies by county and like anything, it is always negotiable. The truth is that both the seller and the buyer benefit from an issued owner´s title insurance. If a previous problem with the title is uncovered later on, a buyer that has no title insurance would likely sue the seller. However if the buyer has title insurance all he/she would need to do is open a claim. Since both parties benefit from this, it would be wise to facilitate the acquisition of owner´s title insurance by splitting the cost. However, in many areas, it tends to be the buyer that purchases it, since it is his/her investment that is on the line.

Secure Your Investment With the Best Title Insurance Agency in Ohio

Buying a home is a very important investment. For many, it not only determines where they will be living but also represents a dream they worked hard to obtain. So why risk your money and hard work? Obtain your title insurance with the best title company today. Call us now at 1-866-475-3005.