Page 3 - Hawaii Top Flyers

You can opt for more enhanced coverage within
your owner’s policy. Standard coverage protects you
against financial loss and related legal expenses for
common title defects that occurred prior to the date
of the title insurance policy. Enhanced coverage
includes all the standard coverages, plus even more
for maximum protection, some of which protect
against matters that may transpire after the date of
the policy.
Title insurance requires a
monthly or annual premium.
Unlike most insurance policies, there is no
monthly or annual premium. Title insurance is a one-
time cost you pay at closing when you purchase or
refinance real property.
Title insurance is expensive.
The one-time premium for an owner’s title
policy is based on the purchase price of your home
and accounts for only a small percentage of your
closing costs. Coverage is provided for as long as you spent over $615 million* defending the property rights
and your heirs own the property. When you add up
the benefits compared to the costs, an owner’s policy due to covered title defects.
of title insurance is quite reasonable.
Paying all cash eliminates
the need for title insurance.
An all-cash purchase eliminates the
requirement of a mortgage loan and therefore
eliminates the need for lender’s title insurance.
However, an all-cash transaction does not eliminate
the risk posed by unknown title defects. An owner’s
policy protects you against possible loss or damage
from a covered title defect.
Homeowner’s insurance
and title insurance offer the
same protection.
Title insurance protects a buyer’s right
to ownership and a lender’s investment. On the
other hand, homeowner’s insurance is a policy that
protects you against potential losses or damage you
can experience to the structure of your home or its
contents during an insurable incident.
Home buyers do not get to
choose the title company.
Under the terms of the Real Estate
Settlement Procedures Act (RESPA), the buyer
generally has the right to choose the title company
when the property is purchased with the assistance
of a federally related mortgage loan. The property
seller may not require the buyer to purchase title
insurance from any specific title company, unless it
has been instructed that the seller will pay for both
the owner’s and loan policies associated with the real
estate transaction.
I’ll never need to use
title insurance.
According to the American Land Title
Association, title insurance policyholders have filed
over 730,600 claims to date.* In 2018, the title industry
of its policyholders and compensating their losses
With so many misconceptions about title insurance,
finding a team of professionals that you can trust is
imperative. At Old Republic Title, we are committed
to providing quality service and being there for you
if your property rights are threatened. To learn more
about title insurance and working with Old Republic
Title, contact a location near you.