Title insurance is one of the most important purchases you can make for your home. By purchasing title insurance, you protect yourself from claims against your home in the event that a filing error or other problem opens up a claim on your home’s title. We’ve talked extensively about why title insurance is a necessity for your home and how the title search process works. This week, we’d like to share a few facts about title insurance that you may not have been aware of. The more you know, the better equipped you’ll be when it comes time to close your home.
Title Insurance Facts You May Not Have Known
Adjusting for Inflation
When you purchase title insurance at closing, you’re paying for a policy that covers the full sales price of your home. (If you’re not, consider increasing the value of the policy to cover the full price.) However, your home’s value may increase over time due to inflation and other factors. In order to account for this, ask your title company about adding an inflation rider to your policy.
You Must Purchase Lenders Title Insurance
There are two kinds of title insurance. One covers your lender for the value of the mortgage, and the other covers you, the homeowner, for the value of the home. You are not obligated to buy title insurance for yourself, but you are obligated to do so for the lender. Of course, it is strongly recommended that you do purchase both lenders and homeowners title insurance.
Your Policy Takes Effect on Closing Day
After the closing is completed, your title company will take the deed to the local county office, where it will be filed and become public record. Your title insurance policy is now in effect.
About Colony Title Associates:
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the Baltimore area. If you have any questions concerning issues that Baltimore title insurance protects you from, feel free to contact us at 410 884-1160 or visit ColonyTitle.com today!