Title Insurance: How Do You Get It?
Title insurance is necessary to protect your property from title fraud, title errors, and other title issues that could lead to competing legal claims to ownership of the property. But how do you get it? Let's take a look.
Your Closing Agent Will Typically Choose For You
In most cases, your closing agent, attorney, or escrow service will select a title insurance policy for you. This will usually happen directly after you sign a purchase agreement to buy the property in question. While it's great to have someone else taking care of everything, it's also important for you to be involved in the process-- so you know exactly what you're getting and how much it will protect you.
Endorsements and Enhanced Owner's Policies
Before signing the papers on your title insurance policy, make sure you're getting enough insurance. While a standard title insurance policy may be the right choice for many property owners, there are several ways to expand your coverage in order to give yourself an extra layer of financial security. One method of doing this is to purchase an endorsement. A title insurance endorsement adds a specific type of coverage to your policy that wasn't there before. For example, since many title insurance policies don't cover mechanic's liens (unpaid contractor's claims), you can often purchase an endorsement for this.
Another option to extend your coverage is getting an enhanced policy, which may be able to cover risks like the forced removal of your structure due to zoning violations, unrecorded easements, environmental liens, boundary and fence issues, and post-policy forgery.
Questions to Ask Your Title Insurance Provider
It's also a good idea to ask your title insurance provider a few questions before you decide to commit to them. For example, you may want to ask:
- How long have you been selling title insurance?
- What company or underwriter do you sell insurance for?
- Do I qualify for any discounts?
- Will anyone be paid a referral fee if I purchase insurance from you?
Remember, in many cases, your real estate agent or attorney may try to guide you toward a specific title agency or title insurance provider. While this isn't always a bad thing, they might also have a vested financial interest in referring you-- and the company may not always be the best for your individual needs.
To learn more about how to get title insurance, contact Florida Title Company today for a free consultation.
And, get a free quote, fill out the form below and an expirienced title attorney will get in touch.