What is title insurance and how does it work?



Title insurance is a way to protect yourself from financial loss and related legal expenses in the event there is a defect in title to your property that is covered by the policy. Title insurance differs from other types of insurance in that it focuses on risk prevention, rather than risk assumption. With title insurance, title examiners review the history of your property and seek to eliminate title issues before the purchase occurs. Title insurance also differs in that it comes with no monthly payment. It's just a one-time premium paid at closing.



Do I need title insurance?



Absolutely. Title Insurance is a way to protect what is likely your largest investment--your home. An Owner's Policy provides peace of mind that your title insurance company will stand behind you if a covered title issue or defect arises after you have bought your home.



What does title insurance cover?



Any number of title issues may arise after the most meticulous search of public records. These hidden defects are dangerous because you might not learn about them for months, or even years, after purchase. Some common examples of risks covered by your Owner's Policy include defects in title causes by:


* Mistakes in recording or indexing legal documents

* Forgeries and fraud

* Undisclosed or missing heirs

* Unpaid taxes and assessments

* Unpaid judgments and liens

* Unreleased mortgages

* Mental incompetence of grantors on the deed

* Impersonation of the true owners of the land by fraudulent persons

* Refusal of a potential purchaser to accept title based on the condition of the title



Why do I need Owner's title insurance if my lender is already getting title insurance?



A Lender's Policy provides no coverage to the homeowner. This type of policy protects only the lender's interest in the property.



Benefits for the homeowner



An Enhanced Owner's Policy provides you with a range of benefits, including:


* Protection for as long as you or your heirs own the property

* Protection from the costs, attorney's fees and expenses of defending against any matter insured by the policy

* Protection against certain covered risks not exceeding the amount of insurance, including a defect in title caused by:

* Forgery or fraud

* The lien of real estate taxes or assessments due and payable, but unpaid

* No right of access to and from the land

* Unpaid mortgages and other liens

* Easements or rights of way, limiting use of the property

* Unmarketable title

* Post-policy Adverse Possession

* Building Permit and Zoning Violation

* Subdivision Violation

* Encroachment of Boundary Walls and Fences

* Restrictive covenant violations


When choosing title insurance, you have two options: standard and enhanced. Take a look at the comparison below to help you choose the policy that best meets your needs.



When you buy title insurance, you'll also benefit from peace of mind knowing you'll be protected from financial loss from covered claims. if you decide to sell your property , title insurance can protect you from financial loss if the sale falls through due to a covered defect in your property's title.



What title insurer do you use for the title insurance that you issue, and does it matter?



The title insurer that stands behind your title policy matters a great deal . If you ever need to make a claim on your policy you'll want to know that the title insurer will be there to process and handle your claim, even if it's decades after the policy was originally issued. For this reason and others, we issue our title insurance policies exclusively on behalf of Old Republic Title.


Old Republic Title has been helping Americans protect their property rights for over one hundred years, and Old Republic's financial strength is unsurpassed in the industry. Since 1992 no other title insurer has has higher financial ratings than Old Republic Title. So when you close with Summit Title Company, you can be confident that your choice of owner's title insurance is from the very best title insurer in the country.


For more information, click here to go to Old Republic Title's website

Please feel free to give us a call or send us an email, and we would be happy to answer any additional questions you may have.



40 W CHESAPEAKE AVE. #502 TOWSON, MD