The Real Estate Encyclopedia
How Does Title Insurance Work And How Am I Covered?
Category - Home Buying Questions - General Home Buying FAQ's

Homeowners must remember that Title Insurance, as opposed to any other type of insurance, protects the policy holder for problems that occurred in the past only.  Essentially, the coverage ends when the homeowner purchases the property and respective title insurance.

 

Title insurance is meant to protect the new property owner from any past claims on the title but it does not protect the policy holder from any new liens placed on the property after the date of the policy.  For example, if the new homeowner fails to pay a contractor and a lien is placed on the property, title insurance will not cover this incident and the homeowner must remove the lien before the property can be sold.  Once the property is sold and the new owner purchases title insurance, any undiscovered claims or liens on the property, which occurred before his/her tenancy, will be covered by the new policy, and so on. 

 
Category(s)
Home Ownership Questions - Home Insurance FAQ's
Home Buying Questions - Buying Legal & Closing FAQ's
Home Buying Questions - General Home Buying FAQ's
Home Buying Questions - Insurances & Taxes FAQ's
[edit]
Home   |   About Us   |   Contact Us   |   Patrons   |   FAQ's   |   Site Map
© 2008 - All Rights Reserved.
Thank you for visiting Real Estate Wiki - the leading dictionary, directory, encyclopedia and glossary for the real estate and mortgage industries .