Frequently Asked Questions
DO I NEED TITLE INSURANCE?
MOST DEFINITELY! 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 or hazard 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 home.
WHAT IS TITLE INSURANCE?
Title Insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim.
BUT THE LENDER ALREADY REQUIRES TITLE INSURANCE. WON’T THAT PROTECT ME?
Not necessarily. There are two types of title insurance. Lender or mortgagee protection, and owner’s coverage. 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.
WHAT DOES YOUR PREMIUM REALLY PAY FOR?
An important part of title insurance is its emphasis on risk elimination before insuring. This gives you, as the policyholder, the best possible chance for avoiding title claim and loss. Title insurance begins with a search of the public land records affecting the real estate concerned. An examination is conducted by the title agent or attorney on behalf of its underwriter to determine whether the property is insurable. The examination of the evidence from a search is intended to fully report all “material objections” to the title. Through the search and the examination, title problems are disclosed so they can be corrected whenever possible. 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.
CAN RIVERVIEW TITLE HANDLE THE CLOSING?
YES, MOST DEFINITELY! We are fully prepared to work with you from the beginning of your transaction all the way to the closing. When you work with the staff at Riverview Title, you can be confident that you will enjoy a successful closing.