Why You Need
Title Insurance
Protecting You.
What Is Title Insurance?
Title means the collective ownership of rights for a piece of property and includes all previous transfers of ownership and liens on the property. Title insurance is an insurance policy that covers past title problems that come up after you buy or refinance a home and that are unknown at the time of purchase.
A title documents your legal ownership or interest in real property, meaning you have the right to use that land and attached structures. It may be a full or partial interest in the property.
There Are Two Types of Title Insurance.
Both the Owner’s Policy and the Lender’s Policy protect the
named insureds against past losses that can occur after a real
estate settlement.
Owner's Policy
An owner’s policy protects a buyer’s ownership interest
in real estate if a past title or ownership issue comes
up after the purchase.
Lender's Policy
A lender’s policy protects the lender in the event a past
title or ownership problem arises after the real estate
transaction. If you are borrowing money from a financial
institution for the real estate purchase, the lending
institution will probably require you to buy a lender’s policy
to protect its interest as well.
How Does Title Insurance Work?
When you purchase title insurance from Garrow Title Agency, we search public records to document the chain of ownership of a property. If any liens or defects are found, we will either cure them before issuing a title policy, or exclude them from coverage. Once we believe that the property title is clean, we will issue you and your lender title insurance policies. These insurance policies protect you and your lender financially from any unknown claims or defects existing at the time of purchase, thus giving all parties involved peace of mind and coverage from liability.
Want to learn more about the importance of title insurance and how it protects you?