5 Questions to Ask Your Title Insurance Company

When you are preparing to purchase real estate, selecting the Lake of the Ozarks title company you want to work with during your transaction is an important step. Our staff is here to help you gather the information you need to make an informed decision when it comes to choosing the right title company. As you interview potential title companies, asking these questions can help you judge their experience and capability.

1. What is Title Insurance?
Title insurance insures against financial loss caused by defects in title to real estate. Title insurance companies defend against lawsuits attacking the title, or in the case of a covered loss, reimburse the insured up to the policy limit. While it's not required for homeowners to carry title insurance, it is highly recommended. Lenders will require homeowners to carry a Loan Policy if the home is financed.

2. What Kind of Defects Does Title Insurance Protect From?
It protects you against loss due to title defects, liens, or other similar matters. Title insurance protects you from claims of ownership by other parties. It protects you against losses from problems that arose before you bought the property. The title company will defend you in court if there is a claim against your property, and will pay for covered losses.

3. What Will You Do if You Find an Issue with the Title?
While everyone hopes that their transaction will be able to be processed smoothly, a good percentage of homes have clouds on their titles at the time of commitment. If your title company uncovers an issue with the title, it is important that they communicate the issue with all parties so that you can work together to resolve the issue before the transaction is finalized. You'll also want to be confident that your title company will disclose everything they discover, not just liens or other outstanding debts that must be repaid. If there is an easement on your chosen property, for example, you will want to know about it prior to closing.

4. What Will My Insurance Policy Cover?
Most title policies are relatively standard, but even so, it's wise to clarify what protection your company's policy will offer. Important basics include things like fraud, forgery, spousal claims, undisclosed heirs, invalid power of attorney, and mistakes in public records.

5. How Long Does the Policy Last?
A loan policy lasts until the loan is paid off. An owner’s policy lasts as long as you or your heirs have a vested interest in the property. It also may provide warrantor’s coverage after you no longer own the property, depending on your policy provisions.

Contact Arrowhead Title, Inc. To Conduct Your Transaction!
If you are selecting a title agency at the Lake of the Ozarks, consider Arrowhead Title, Inc. We have been in business since 1986, and we pride ourselves on providing accurate, reliable title services to every individual we have the pleasure of serving. We would be honored to facilitate your transaction as you purchase your next property.


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