Title insurance is about protection; protecting your home, your family, and yourself. It’s about preventing a mishap, or lessening the severity of its impact. Unlike most insurance policies, title insurance is a one-time-only fee. An Owner’s Policy will protect you as long as you and your heirs have an interest in the property.
There are two types of title insurance:
A Loan Policy
protects the lender for the amount of the loan. If you only have a Loan Policy, you are not protected if a problem materializes with your title.
An Owner’s Policy
protects you and provides assurance that your title company will stand behind you, if a covered title problem arises after you buy a home.
What is the difference between an Owner’s Policy a Lender’s Policy?
Why Title Insurance?
Remember that the best title examination or search cannot protect your equity and home from matters not appearing in the public records. However, the following matters are just examples of what a Title Insurance Policy* issued by Arrow Title Services, Inc. can protect you from:
- Documents executed under false, revoked or expired powers of attorney.
- False impersonation of the true land owner.
- Undisclosed heirs.
- Improperly recorded legal documents.
- Failure to include necessary parties to certain judicial proceedings.
- Defective acknowledgements due to improper or expired notarization.
- Gaps in the chain of title.
- Mistakes and omissions resulting in improper abstracting.
- Forged deeds, mortgages, wills, releases of mortgages and other instruments.
- Deeds by minors.
- Conveyances by an heir, devisee or survivor of a joint estate who attempts to attain title by ill-gotten means.
- Inadequate legal descriptions.
- Conveyances by undisclosed divorced spouses.
- Duress in execution of wills, deeds and instruments conveying or establishing title.
- Deeds and wills by persons lacking legal capacity.
- State inheritance and gift tax liens.
- Administration of estates and probate of wills of missing persons who are presumed deceased.
- Issues involving improper marital status.
- Improper modification of documents.
- Deeds by persons falsely representing their marital status.
- Claims by creditors of decedent against property improperly conveyed by heirs and devisees.
- Issues concerning unlawful takings by eminent domain or condemnation.
- Forfeitures of real property due to criminal acts.
- Conveyances and proceedings affecting rights of military personnel protected by the Soldiers’ and Sailors’ Civil Relief Act.
- Interests arising by deeds of fictitious parties.
- Adverse possession.
- Lack of jurisdiction or competency of persons in judicial proceedings.
- False affidavits of death or heir ship.
* Subject to certain limitations set forth in the policy.
Frequently Asked Questions
Should I shop around for the best title insurance deal?
Absolutely! While the State of Florida closely regulates rates, every title company charges a little different for their fees. So we encourage you to obtain quotes. These differences in price usually aren’t very big – so a big factor to consider is customer service and making sure your title company is going to communicate effectively with you!
Can my title company handle the settlement?
Yes! We are fully prepared to work with you from the beginning of your transaction all the way to its conclusion.
How do I choose a title insurance agent?
Do your homework. Verify the agent is in good standing with their licenses. Ask for a copy of their Errors and Omissions Insurance. Lastly, speak to your title agent and get to know them to determine their knowledge.
Claims to Ownership
Would you ever think you could lose your home because another person legally has a right to it? That thought might never cross your mind but perhaps it should. Your Owner’s Title Policy can protect you from forged deeds, undisclosed heirs in an estate or even defective Deeds to name a few.
Liens, Mortgages or Other Financial Losses
Title insurance is a means of protecting yourself from actual financial loss due to possible liens from the previous owner or unsatisfied mortgages. We will make sure that you have clear title before you close.
But The Lender Already Requires Title Insurance. Won’t That Protect Me?
No. There are two types of title insurance. A Lender’s Policy only insured your lender that the mortgage it gave you is a valid first lien ont he property. Most lenders require this type of insurance and will typically require you to pay for it. Your Owner’s Policy, on the other hand, protects your ownership interests in the property. Your policy defends you against any covered claims. If you are going to defend your lender, why not defend yourself?