The title insurance policy, provides security for the financial protection of real estate ownership. After a thorough examination of public records that disclose past and current information regarding ownership of property, authorized agents of Excel will issue a title insurance policy on behalf of the interested party (owner, mortgagee, lessee, etc.). Unlike hazard and automobile insurance, title insurance insures against the adverse claims arising from the past. The title policies specify in whom the legal estate is vested and indemnify the insured party against any loss they may sustain as a result of past title defects so the real estate investment is secure.
Why should you purchase an Owner’s Title Insurance Policy?
An Owner’s Policy is the owner’s best protection against potential title defects that could deprive you of your ownership rights. In the event of a claim, the underwriter will either correct covered title problems or will reimburse you for insured losses up to the amount of the policy and will defend against any lawsuit attacking your title as insured.
The Loan Policy, issued in favor of the lender, does not protect the borrower’s title. The lender requires a Loan Policy to protect its mortgage interest in the property. Even though a borrower must pay the premium for the Loan Policy, it only protects the lender, and the borrower will not be reimbursed by the underwriter for any losses suffered.
An Owner’s Policy insures against title defects that are not covered by an attorney’s opinion or title report. An attorney’s opinion of the quality of the record title may not account for many title defects that could easily be missed even after an extensive search of the county records. Following is a list of examples:
a. Missing signatures
b. Forged documents
c. Unknown creditors
d. Incapacity of a grantor
e. Undisclosed or missing heirs
f. Mistakes in the filing of documents
The Owner’s Policy can help an owner market the property. By presenting a copy of the Owner’s Policy, you are providing evidence to the prospective buyer that, as of the effective date of the policy, the title to your real property is marketable.
The Owner’s Policy provides you with immediate legal support. If a defect is identified, an underwriter will take action to remedy the defect. If the matter is covered by the Owners Policy, all of the time, money and effort to correct it will be absorbed by the underwriter.
To protect your real estate investment, you will be charged a one-time premium. The Owner’s Policy remains in effect for as long as you own the property.