What Does Title

Insurance Cover?

By: Carmen Arruda

What Does Title Insurance Cover?

A former loan officer, Carmen Arruda has the lending experience necessary to

support her existing management roles in title insurance. A former assistant vice

president at Fidelity National Title Group, Carmen Arruda managed broker

relationships, loss mitigations, and title insurance transactions.

What Does Title Insurance Cover?

Also referred to as an owner’s policy, title insurance protects homebuyers from

title issues that may arise following the issuance of that title . Based on a home’s

purchase value, the title insurance policy covers hidden errors in deeds,

overlooked liens and judgments, and undisclosed heirs to the property. A loan

policy is also issued under title insurance which protects the mortgage lender in

the same respect. However, as the loan is paid off by the homeowner, the

insurance coverage decreases and only protects the debt pending. transactions.

What Does Title Insurance Cover?

Title insurance guarantees that a homeowner has the right to occupy a property,

and it frees them from obligations to pay debts acquired by past owners. Free

and clear of liens and judgments, a home is transferred to a new owner without

additional debt stipulations. If a title problem arises, services and fees

associated with solving the predicament are covered under the insurance

policy.tions.