Buying a home is a big investment in your future. Therefore, it is imperative to protect your home as much as you can since issues with a property like a lien or bankruptcy can arise even after the purchase is completed.
It is highly recommended that you obtain title insurance to protect you from and resolve any ‘surprise’ issues that may occur during your home purchase.
Our title specialists at True Concept Title are here to answer all your title insurance questions! Let’s start with how long does title insurance last?
What is Title Insurance?
First, title insurance is designed to protect both the homeowner and the mortgage lender from any issues associated with the title to a property, known as “defects.”
The title is a document that proves that you are the legal owner of a property, and is different from a deed, which is a document used to transfer ownership of a house if you sell your home.
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Buying a home doesn’t have to be daunting. With True Concept Title, you have expert help through every step in the title insurance and escrow process. Protect the biggest purchase of your life with us!
How Does Title Insurance Work?
Typically, the process of getting title insurance consists of two steps. First, the title company will conduct a title search to ensure that the home that you are about to buy has a clean title. If they notice any defects such as liens, judgments, or debts, we will notify you.
Next, after the title is confirmed to be clean, the underwriting process begins. Then, the title company will offer you a quote based on the risks of the purchase.
Keep in mind: Most title companies will not offer a title insurance policy if the title is filled with defects until the issues are resolved.
Is Title Insurance Required?
Many mortgage lenders require homebuyers to obtain a title insurance policy to protect them against issues. This is called a lender’s title insurance policy. The exact laws regarding who pays for title insurance will vary by state.
We highly recommend the purchase of title insurance because, without protection, you could become responsible for any prosperity taxes or debts that the previous owner failed to pay.
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How Long Title Insurance Policies Last
Generally, the duration for which a title insurance policy is valid will depend on the type of policy that you have.
A lender’s title insurance policy will typically last until your mortgage loan has been paid in full.
Lender’s title insurance policies are frequently required to receive a mortgage because the mortgage lender faces risks simply by providing a loan for a property whose title may or may not be defective.
An owner’s title insurance policy is valid for as long as you or any of your heirs own the property. This type of title insurance policy protects you from lawsuits from third parties who suggest that there were claims filed against your home before you purchased it.
You can also purchase an extended owner’s policy which can protect you against additional liabilities like encroachments, forgeries, damages, living trusts, and any covenant violations the previous owners may have had.
Purchasing a home? Protect your property with title insurance from True Concept Title. Call our national team based in Tampa Bay, FL today: 813-263-7168.
Does Title Insurance Have to Be Renewed?
Unlike other insurance policies that are paid monthly, semi-annually, or annually, title insurance is a one-time payment paid upon the closing of a property. If you add any additional coverage later, you will need to pay an additional sum.
It is also important to note that coverage can potentially last indefinitely for any title warranties made upon the sale of your home. Therefore, it is recommended that you do not cancel your title insurance policy, even if you sell your property or transfer the title.
Protect Your Investment with Title Insurance
If you are in the process of purchasing a property, we highly recommend that you obtain title insurance to protect your investment. This is too important of a purchase, and likely the largest in your life. Our national title experts will make you feel at ease through the entire home buying process.
Are you ready to purchase a new home and need to obtain title insurance? Call True Concept Title at (813) 263-7168 today!