Title Insurance Tips You Should Know

Purchasing a new home in Columbia, MD is a big investment. Homeowners are presented with several types of insurances and protective policies at the time of their closing. However, one important kind of coverage that has a tendency to go unnoticed is title insurance. Title insurance, while sometimes optional, protects you and your home from claims and false reports against your property, whether they arose before or after you purchased the home. Title insurance also can protect you whether you are aware of the problem or if you are unaware of the fraudulent act taking place altogether.title-insurance-columbia-md

To make sure that you and your new home are completely covered, it is important to purchase title insurance. In the end, if someone makes a claim against your property, the title insurance will not only protect you from emotional damage but, in lieu of your particular policy, may pay all court and related costs. After the proceeding, if it is determined that the claim was false, you may be reimbursed for the whole amount of your title insurance policy.

Different Types of Title Insurance Policies.

There are two types of title insurance policies—a lender’s policy and an owner’s policy. A lender’s policy, often referred to as a loan policy, applies only to the borrower and the property’s mortgage price. It does not concern or protect the actual listing price of the home. Whereas, an owner’s policy is purchased for a one-time fee at your closing and lasts until you no longer have an investment in your home. It should be noted that only the owner’s policy protects the homeowner if a claim should take place.

What is the Total Cost of Title Insurance?

In most geographical areas, the price of title insurance is set so you won’t see many discounts or higher prices at one location than another if you shop around. For most homeowners in Columbia, MD, the cost is largely determined and calculated from the value of your property. Some people are hesitant about purchasing title insurance but you should know that it is a one-time investment and continues for as long as you own the property and if something does happen to you it can be passed down to your beneficiaries.

What Does Title Insurance Protect Against?

Typically, insurance agencies in Columbia, MD will have predetermined levels of title insurance protection. The standard title insurance coverage plan protects lenders, and homeowners alike, against fraud such as forgery and impersonation, undisclosed records, deeds and other paperwork not correctly documented, pre-existing property and law violations, off-the-record problems and property lines and boundaries.

Additional Questions to Ponder When Purchasing Title Insurance.

  • Which title insurance policy best suits your situation? Is it better for you to individually purchase an owner’s or loan policy? And if you choose to buy both policies at the same time, will your Columbia, MD insurance agency provide a discount?
  • Do you need additional advice from an attorney? Ask him or her if you are being overcharged and for other financial assistance measures?

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings in Washington DC and the Delmarva area every year. The founder Tee Tillman has over 23 years of 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!

Tags: ,

Leave a Reply