If you never have purchased a home, you might not be familiar with title insurance. Title insurance protects both home owners and lenders against loss or damage occurring from liens, encumbrances, defects in the title, or actual ownership of a property. Unlike traditional insurance, which protects against future occurrences, title insurance protects claims from past occurrences of record that are unknown to you. The two types of title insurance are lender's title insurance and owner's title insurance.
Lender title insurance policies protect the mortgage lender after the lender forecloses on your property. The lender's title insurance policy only protects the lender if a title or ownership problem arises after the property is foreclosed, therefore, it doesn't help you. A lender's title insurance policy is issued for the amount of the mortgage, and the coverage decreases as you pay down your loan. The lender's title insurance policy ends when you pay off your mortgage. If you borrow money to buy your home or property, your lender is most likely will require you to purchase a lender's title insurance policy.
Owner's title insurance polices protect the home owner for loss up to the full price of their home and legal costs defending your title if a title or ownership issue arises after they buy their home. This type of title insurance policy is issued for the amount the home owner paid for their home, and will cover the home owner as long as they own an interest in the property. The home owner is not required to purchase an owner's title insurance policy, but it is strongly recommended. It offers protection from any encumbrances on the property title that may have been missed after your property closing.
Title2Land, LLC has been in business since 1998, and has closed over 50,000 property transactions. There isn't likely a property transaction that we haven't seen, and it would be a pleasure to go over any questions you may have about title insurance policies, and how they can offer you protection for your property purchase. Click this CONTACT US link and fill out the simple form. We will get back with you immediately, and set you up a free consultation with Baton Rouge's and all of Louisiana's expert title company! Let us be your one stop shop for property transactions!