Title insurance protects the homeowner from loss when issues related to the title of the property come into question.
The title is simply the property deed, the legal document that transfers possession from one person to another of the house, land, and anything else stated therein. You can use title insurance rate calculator which is designed to allow you to get the title rate information.
The seller will sign the title to the purchaser in an ideal real estate transaction. The document now proclaims that the buyer is now the owner of the property. It should be a cut and dry process, but the title of a property may be in dispute in certain situations.
Image Source: Google
– What Title Insurance Does?
Any possibilities of problems arising from a real estate transaction are smoothed to allow a clean sale with title insurance. Unlike other types of insurance that compensate after something happens, title insurance works to protect the policy owner from losses that occurred before the policy was launched. Title insurance varies from plans such as auto and fire insurance as it does not cover losses that occur after the sale.
The insurance will only protect you against losses that involve the previous owner of the property. In turn, if you decide to sell your home, a prospective buyer may pursue a policy to protect himself against any issues (ownership, taxes) that you have as a homeowner.
Although the homeowner does not require title insurance, it can be a good investment for those seeking to purchase certain properties.