Insurance coverage that ends the day you buy it | Lifestyle
Insurance coverage that ends the day you buy it
Unlike homeowners or auto insurance, real estate Title Insurance coverage periods end on the day they are issued and extend backward in time. However, the policy’s protection period extends forward and stays in place until the property is sold to a new owner.
Protecting against future claims
Title Insurance protects house and condominium owners against future claims based on what could have already happened before they bought. It covers title problems resulting from the actions of previous owners, such as improper boundaries, encroachments, unresolved permits, delinquent taxes, and ownership disputes.
Undiscovered title defects
Undiscovered title defects remain with the property through all ownership transfers until they are found and resolved. This means that a current owner can be held responsible for title issues that originated from previous owners. Title Insurance helps protect owners from the financial consequences of these defects.
It is crucial for property owners to understand the importance of Title Insurance and its role in safeguarding their rights and ability to sell the property. By addressing potential title problems, owners can ensure a smooth and secure real estate transaction.