Keith W. Michon, P.C. Title Insurance
What is Title Insurance?
When we think of insurance, we usually think of hazard/fire insurance, flood insurance, car insurance or life insurance. A lesser known insurance which may be the most important of all is title insurance. Unlike the other types of insurance listed above, title insurance represents a one-time charge paid at the time of closing. This one time premium may not cost anymore than a typical annual hazard insurance premium. However, this unique coverage protects against hidden title hazards that may threaten your financial investment in your home. Some title hazards may have arisen 50 or more years ago.
What does title insurance protect you from? Here are some examples:
- Deeds or wills that contain improper wording or incorrect names
- Outstanding judgments and mortgages
- Liens against the property because the seller has not paid their taxes
- Pending legal action against the property
- Forgery of deeds or other documents
- Unrecorded easements
- Title obtained under improperly probated will
- Fraudulent documents
- Human errors or mistakes committed in the public records
- Incorrect legal property descriptions
Prior to closing, a property title search is performed at the public land records. The search is conducted to locate and correct title problems that affect the property. Unfortunately, even the most diligent title searches cannot locate all hidden title hazards.
Title insurance offers financial protection against the hazards listed above as well as other title hazards. The title insurer will pay for the costs associated with defending the title to the property and will either pay a valid claim or correct the title hazards.
For most people, the purchase of a home represents their single most important investment. It is very important to include the cost of title insurance in the home purchase budget.
First Time Homebuyer Discount
Any first time homebuyer that purchases a home through the Law Office of Keith W. Michon, PC is eligible to receive a 10% discount off the one-time premium cost of owner's title insurance