Buying a house is one of the biggest and most significant investments in the life of a lot of people. That is why when purchasing a property, it is good to know that there are several types of insurance to protect the home and movable property. There are several insurance policies to protect the property, such as insurance against loss or damage caused by fire, theft or damage caused by major forces such as wind and rain.
However, you can also obtain property title insurance or owner’s title insurance policy that secures the title to the owner of real estate in case it suffers a loss or impairment in its right.
Why Do You Need Title Insurance?
First, it is necessary to understand that when buying a property, you are not only going to acquire the land or the building but the title of the property as well. A property owner’s right among others is to alienate, lease, mortgage, and the right to occupy and use the land. Such title may be limited by rights and claims of third parties, which may be passed by owners or creditors who are not aware of both the seller and the buyer when granting the sale. The limitations referred to may be lawsuits, foreclosures, mortgages or any other encumbrances that affect the property and that therefore may affect the use and enjoyment of the property as well as causing monetary losses to the owners.
The title insurance gives the insured person with confidence about their title and protects them from errors or inadvertences in the title study, as well as inaccuracies in the Property Registry. At the same time, the title policy provides security to the buyer of a title presented in the record that has not yet been qualified and entered. The purpose of property title insurance is to protect against this type of risk that is beyond the control of the owners.
Coverage of Owner’s Title Insurance Policy
- Impersonation of the actual property owner
- Compensation for expenses to satisfy a third party, including various allowances
- Difference in the value of real estate before and after the claim
- Misinterpretation of wills
- Demolition costs or restoration resulting from the insured event.
- Cost of legal defense
- Undisclosed or missing heirs
- Penalties imposed by management.
- Development costs of a project legalization,
- Other economic damages,
Owner’s Title Insurance also provides the following additional benefits
- Pre and post policy protections
.Coverage of home title insurance protects homeowners against claims arising before and after the date of the policy. The owner is covered if someone else shows interest in having or claims to have rights affecting the title or if the title is defective. The post-protection policy also includes coverage for forgery, impersonation, easements, use limitations and invasion by neighboring structures built after the date of the policy. Boundary walls or fences, however, are exempted.
- Expanded Access Coverage
The owner’s policy provides homeowners extended access protection for access to the property and from the property. Traditional home title insurance policies do not define the type of access a property owner has, but you can ask to specifically ensure both vehicular access and the pedestrian, by a legal right.
- Violation of restrictive covenants
The Homeowner Policy protects homeowners against loss of title to a property in case a restrictive covenant occurred before the insured acquired title.
- Violation of Construction Permit
The Policy Homeowner covers homeowners if they must remove or repair an existing structure. Except for boundary walls and fences that were built without a building permit from the appropriate government office. This issue is covered by deductible amounts and maximum limits of liability.
The title insurance policies are issued by insurance companies in favor of the owner of the real estate at the time of making the sale. The insurance is called owner’s policy and usually insure the amount paid by the owner of the property upon purchase and are effective for as long as the owner retains an interest in the property. It is important that when buying a property, you have to ask about this and other policies that you can get to protect your property.
This title insurance policy owned also facilitates or speeds up the closing of operations blocked by lack of guarantees for any part of the process.