Ohio Flat Fee MLS
information on this page is courtesy of Stewart Title
W. Schrock Road
Andi Dalton, 614-895-0200
Protecting your Home
A home is usually the largest
single investment any of us will ever make. When you purchase a home, you will purchase
several types of insurance coverage to protect your home and personal property.
Homeowner's insurance protects against loss from fire, theft, or wind damage. Flood
insurance protects against rising water, and a unique coverage known as title insurance
protects against hidden title hazards that may threaten your financial investment in your
Largest Single Investment
Title insurance is not as well
understood as other types of home insurance, but it is just as important. You see, when
purchasing a home, instead of purchasing the actual building or land, you are really
purchasing the title to the property - the right to occupy and use the space. That title
may be limited by rights and claims asserted by others, which may limit your use and
enjoyment of the property and even bring financial loss. Title insurance protects against
these types of title hazards.
Other types of insurance that
protect your home focus on possible future events and charge an annual premium. On the
other hand, title insurance protects against loss from hazards and defects that already
exist in the title and is purchased with a one-time premium.
Two Kinds of Title Insurance
benefit You inTwo Ways
There are two basic kinds of
Lender or mortgagee protection,
Most lenders require mortgagee
title insurance as security for their investment in real estate, just as they may call for
fire insurance and other types of coverage as investor protection. When title insurance is
provided, lenders are willing to make mortgage money available in distant locales where
they know little about the market.
Owner's title insurance lasts
as long as you, the policyholder - or your heirs - has an interest in the insured
property. This may even be after you have sold the property.
Depending on local practices
and state law where the property is located, you may pay an additional premium for an
owner's policy or you may pay a simultaneous issue charge - usually a smaller amount - for
the separate lender coverage. You may even split settlement costs with the seller for the
lender or owner's policy.
What does Your Premium
Really Pay For?
An important part of title
insurance is its emphasis on risk elimination before insuring. This gives you, the
policyholder, the best possible chance for avoiding title claims and loss.
Title insuring begins with a
search of public land records affecting the real estate concerned. An examination is
conducted by a title agent or attorney on behalf of its underwriter to determine whether
the property is insurable. The examination of evidence from a search is intended to fully
report all "material objections" to the title. Frequently, documents that don't
clearly transfer title are found in the "title chain," or history, that is
assembled from the records in a search. Here are some examples of documents that can
Deeds, wills and trusts that
contain improper wording or incorrect names;
Outstanding mortgages and
judgments, or a lien against the property because the seller has not paid his taxes;
Easements that allow
construction of a road or utility line;
Pending legal action against
the property that could affect a purchaser; or
Through the search and the
examination, title problems are disclosed so they can be corrected whenever possible.
However, even the most careful preventative work cannot locate all hidden title hazards.
Hazards - Your Last Defense
In spite of all the expertise
and dedication that go into a title search and examination, hidden hazards can emerge
after closing, resulting in unpleasant and costly surprises. Some examples of hazards
A forged signature on the deed,
which would mean no transfer of ownership to you;
An unknown heir of a previous
owner who is claiming ownership of the property;
Instruments executed under an
expired or a fabricated power of attorney; or
Mistakes in the public records.
Title insurance offers
financial protection against these and other covered title hazards. The title insurer will
pay for defending against an attack on title as insured, and will either perfect the title
or pay valid claims. All for a one-time charge at closing.
Your home is your most
important investment. Before you go to closing, ask about your title insurance protection,
and be sure to protect your home with an owner's title insurance policy.
The information on this page is courtesy of Stewart Title
257 W. Schrock Road
Westerville, OH 43081
Contact Andi Dalton, 614-895-0200