What is home title insurance and why is it needed when purchasing a house? As the name implies, this is an important form of insurance that protects your home from possible losses that may occur during a real estate transaction. It ensures your legal rights of inheritance and use, as well as protection against liens and encumbrances. In simple terms, it protects your money from any lender or bank who may choose to foreclose on your property in the event that you become unable to make your monthly mortgage payments. For example, if a third party has an interest in purchasing your home but cannot come up with the cash to do so, they would most likely be forced to foreclose on your house, which would result in a loss for you. If you are searching for a Home Title Insurance Weston team, World Title is your place for all your needs!
What are the benefits of purchasing home title insurance? The primary benefit of purchasing this form of insurance, of course, is the protection it provides against loss of property taxes in the event that you become unable to make your mortgage payments. Generally, homeowners pay property taxes based on the value of the property, so when your house is purchased and the property taxes are added to that amount, the resulting figure is your closing costs.
Why would I need home title insurance? If a lender or bank purchases your house, they will be required by law to hold title insurance. Essentially, they are protecting their interest in your home, by making sure that they are not liable for any damages to it during the process of closing. Without this type of protection, they could be responsible for paying the property taxes out-of-pocket. Unfortunately, there is no easy way to determine exactly how much insurance is needed. You will want to consult with a real estate agent who is familiar with both mortgage lending and title insurance, as well as the cost of title insurance.
Does home title insurance cover flood damage? No, but it is likely to cover damage due to fire as well as vandalism. Additionally, some companies may include in their coverage damage caused by thieves. Depending on the specific policy, you may also find it helpful to add damage caused by ice and hailstorms. This type of protection is typically not included in the standard home title insurance package, but if you are offered one, it is strongly suggested that you purchase it.
Does third-party liability apply to my mortgage lender title insurance? Yes, as long as the agent collecting the premium is a licensed agent and the policyholder. Most policies do not specify how the agent will be paid, so it is up to you to decide whether you would prefer the third-party collection of premiums paid by you, or by your mortgage lender. You should also remember that if the mortgage lender did not write the policy, it is not their responsibility to collect on the policy. It is up to you to ask them specifically about third-party liability.
What is escrow? Escrow is the monthly payment that you make directly to your mortgage lender in exchange for the right to purchase the property. The amount is contingent upon the closing date. If the transaction does not close by the specified closing date, then you lose your deposit. Some companies offer escrow only if the transaction closes, in which case they are paid by the third-party collection agency.
Home Title Insurance Weston
Call World Title Company today to find out more about hiring a real estate title company for home title insurance Weston. 954-888-4646