Owners title insurance can be selected when buying or refinancing a property. It only needs to be purchased once by a homeowner and will cover title issues for the entire time that they own the home. Understanding what title issues include can help homeowners decide whether to purchase owners title insurance. Title problems covered by owners title insurance in Bennington can be found below.
What Are Title Defects
Title defects are not common but they could have a significant impact when they do appear. Defects are situations that make it difficult to determine the legal owner of a piece of real estate. Even though a title search is performed in most property transfers, certain problems are not readily detectable and can therefore stay hidden for several years and across several changes in ownership. Any identified issues must usually be removed before the completion of a sale, but in instances where they are not found, title insurance can protect the homeowner of the home.
Title Problems Covered By Owners Title Insurance
Title defects can appear in different shapes and sizes. The following are just a few examples (keep in mind that this can differ based on the insurance company).
- Missing Parties
- Unreleased Liens
- Unfiled Releases
- Failure to Follow Correct Recording Rules
- Unrecorded Encumbrances
- Undisclosed Heirs
- Forged Documents
- Mental Incompetence of a Party
- Mistaken Identity
- Incorrect Legal Interpretations
Why Buy Owners Title Insurance
If you purchased an owners title insurance policy, the insurance agent may either correct the issue or reimburse you for resulting losses. It can even help defend a law suit threatening your ownership rights. Policies are purchased based on a particular dollar amount, so coverage limits do apply. Also, certain items can be exclusions on your policy. Ask your closing representative for a full list and for more information on title problems covered by owners title insurance in Bennington. Ultimately, owners title insurance is the best way to protect your ownership rights to a home. Even though the cost can be high, it is due only one-time and covers you and your heirs for as long as you maintain ownership. It is certainly worth the cost given that a home may be the biggest single investment that you make.