An Owner’s Title Insurance Policy is your best protection against potential defects that can remain hidden despite the most thorough search of public records. This policy provides assurance that the Title Company will stand behind you, monetarily and with legal defense if needed, should a covered title problem arise after the purchase of your Philly home. If you are purchasing with a mortgage your lender will also require their own Loan Policy which is based on the dollar amount of the loan and protects the interests of the lender. It does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off.
Owner’s Title Insurance is purchased for a one-time nominal fee at closing, is issued for the amount of the real estate purchase and lasts for as long as you or your heirs have an interest in the property. Possible hidden title problems can include:
- Errors or omissions in deeds
- Mistakes in examining records
- Fraud and forgery
- Conflicting wills
- Undisclosed heirs
- Undisclosed but recorded judgment or spousal/child support lien
- Undisclosed but recorded prior mortgages
Considering all that it covers Title Insurance is a quite reasonably priced. Pennsylvania title insurance rates are regulated by the PA Department of Insurance; therefore the title insurance premiums (last revised 2012) are the same with all title insurers.