There are two types of title insurance policies that you need to be aware of:

1) Owner’s Title Insurance Policy

2) Enhanced Owner’s Title Insurance Policy

Sometimes title problems occur that could not be found in the public records or are inadvertently missed in the title search process. To help protect you in these events, it is recommended that you obtain an Owner’s Policy of Title Insurance to insure you against the most unforeseen problems.

Owner’s Title Insurance, called an Owner’s Policy, is usually issued in the amount of the real estate purchase. It is purchased for a one-time fee at closing and lasts for as long as you or your heirs have an interest in the property. Only an Owner’s Policy fully protects the buyer should a covered title problem arise with the title that was not found during the title search. Possible hidden title problems can include:

• Errors or omissions in deeds

• Mistakes in examining records

• Forgery

• Undisclosed heirs

An Owner’s Policy provides assurance that your title company will stand behind you — monetarily and with legal defense if needed — if a covered title problem arises after you buy your home. The bottom line is that your title company will be there to help pay valid claims and cover the costs of defending an attack on your title. Receiving an Owner’s Policy isn’t always an automatic part of the closing process, and is paid for by different people in different parts of the country. Be sure you request an Owner’s Policy and ask how it is paid for where you live. No matter who pays for the Owner’s Policy, the fee is a one-time fee paid at closing. The Owner’s Policy protects you for as long as you or your heirs have an interest in the property.

You also have the option of purchasing a policy with expanded coverage. It’s called the Homeowner’s Policy and it covers more things than the Owner’s Policy. Ask your local title company for an explanation of the expanded Homeowner’s Policy so you can decide which policy is the best one for you.Item description

Title insurance defends your investment against claims on your property. Under this policy, your insurance will pay for the defense of your property, as well as pay valid claims against title. Your insurance coverage extends to those hidden hazzards that cannot be detected by a thorough title search. Some defects will emerge during the purchase of the property, while others might not make themselves known until long afterward.

By investing in the Enhanced Homeowners Policy, you not only protect your property up to the time of purchase, but also insuring your investment for the future. Contact Preferred Title for more details on how an Enhanced Policy can help you.

Some of the benefits included in the enhanced policy are:

• Inability to use land for single family dwelling because of a violation of a zoning ordinance or restriction

• Post policy automatic increase in value up to 150%

• Forced removal of a structure which violates an existing zoning law

• Restrictive covenants violations and Covenant violation resulting in reversion

• Unrecorded easements

• Forced removal of a structure which encroaches onton another property or an easement

There are two types of title insurance: Owner’s title insurance, as mentioned above, and Lenders title insurance, also called a Loan Policy. Most lenders usually require a Loan Policy when they issue you a loan. The Loan Policy is usually based on the dollar amount of your loan. It only protects the lender’s interests in the property should a problem with the title arise. It does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off.

Prices vary from state to state. Be sure to ask us about pricing and whether the Loan Policy and Owner’s Policy are sold separately or together.