If you haven’t heard of property insurance during your home buying process, you will soon. It may not be as well known as home insurance, let alone flood insurance, but property insurance has an important purpose. Here are the basics.
What is title insurance? Title insurance protects you and your mortgage lender from making mistakes when searching for a title. It also protects the insured against future damage due to past mistakes or claims against property. For example, hidden defects such as fraud, forgery, missing heirs and even typographical errors can affect property ownership. There are usually two types of title insurance: lender and owner.
Types of legal expenses insurance: There are usually two types of title insurance: lender and owner. The lender’s policy is usually based on the size of the loan and protects the lender’s interests in the property from a property problem. The insurance coverage decreases from year to year and expires when the loan is paid off. Property title insurance fully protects the homeowner in the event of a problem with the property that was not discovered during the title search. It also helps pay the legal fees associated with defending a claim for the title. It is valid as long as you own or are interested in the property.
How much is it? In Texas, title insurance rates are set by the Texas Department of Insurance and depend on the value of the property. If you’re a homebuyer buying condo insurance, you pay a one-time fee when you purchase it. You may also be able to negotiate to have the seller pay for your coverage.
The advantages of legal protection insurance: Even if claims from legal protection insurance are not as common as with other types of insurance, they still occur and are complicated legal questions. Think of title insurance as an additional way to protect your largest investment.
Ask your agent for an overview of legal protection insurance and how to get it.
As the largest real estate association in North Texas and the sixth largest real estate association in the United States, MetroTex offers programs and services to over 24,000 professionals involved in all aspects of the real estate industry. Please visit the website for more information www.dfwrealestate.com.