For most individuals, the purchase of real estate is the largest investment that they will make in their lifetime. To protect that investment, they typically purchase homeowner’s insurance, flood insurance and title insurance. Generally, homeowner’s insurance protects you against the risk of loss from theft, fire or wind, while flood insurance protects you against losses related to rising water. Title insurance provides you with protection against future claims or losses due to title defects which were created by some past event (i.e., prior to the acquisition of the real estate). These risks are far less obvious than those protected against by homeowner’s and flood insurance, but can be equally devastating.
Some other important differences between title insurance and other types of insurance is that, when you purchase title insurance, you pay a one-time premium at the rates mandated by the State of Florida (commonly referred to in the industry as the promulgated rate).
When you engage The Brickell Title Group, we conduct a search of the public records for any matters affecting the subject real estate. Next, we review the information to determine whether there are any rights or claims that may have an adverse impact on title. The title search may reveal the existence of recorded defects, liens or encumbrances upon title (e.g., unpaid taxes, unsatisfied mortgages, tax liens, or other restrictions). Any material issues revealed by the title search will be identified and addressed prior to closing and your new owner’s policy will protect you against covered defects, liens or encumbrances that were unknown at the time of closing.
The most frequently purchased types of title insurance policies include owner’s policies and mortgagee policies. The first protects owners as discussed above while the second provides lenders with certain important protections with respect to the mortgage delivered by the borrower at closing. If you are financing the purchase price of a home, you can expect that your mortgage lender will require you to purchase a mortgagee policy. Owner’s title insurance policies last as long as the policyholder (or, in certain cases, its heirs or other successors) has an interest in the insured property.
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