WHAT YOU SHOULD KNOW

1. IT IS IMPORTANT TO PROTECT YOUR HOME INVESTMENT!

Buying a home is usually one of the largest single investments any of us will ever make. When you purchase a home, you will purchase several types of insurance coverages to protect your home and personal property. Homeowners Insurance protects against loss from fire, theft, or wind damage. Flood Insurance protects against rising water. Title Insurance protects against hidden title hazards that may threaten your financial investment in your home (such as delinquent taxes that were never paid by the previous owner). Rocket Title wants your investment to be secure, so we are here to secure it for you!

2. PROTECTING YOUR LARGEST SINGLE INVESTMENT

Title Insurance is just as important, if not more important, than Homeowner’s Insurance. With a Homeowner’s policy, many of the foreseen hazards covered under this policy can often be avoided, especially through careful maintenance of your home. However, with Title Insurance, we provide security for the unforeseen events that can possibly occur, no matter how prepared one may feel they are! When purchasing a home, you are not only purchasing the physical dwelling, you are also purchasing true claim to the property, through the title of the property – the right to occupy and use the space. That title may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss.

While other types of insurance require an annual premium payment, title insurance is only collected once, at closing, and it is often included in your closing costs.

There are two basic kinds of title insurance:

• Lender or mortgagee protection (Required by the lender, to insure their collateral)
• Owner’s coverage (Optional for a new homebuyer, to insure their investment)

Most lenders require mortgagee title insurance because it secures their investment in real estate.

If a lender wants to insure their investment, why wouldn’t an owner, who makes monthly payments? Imagine making monthly payments on a home for five years, only to find out you never really owned it because the seller before you received a forged deed. Without insurance, not only are you out of five years of mortgage payments, taxes, insurance payments, etc., you are also out of a place to call home! Owner’s title insurance lasts as long as you, the policyholder – or your heirs – have an interest in the insured property. You may even be insured after you have sold the property.

3. WHAT DOES YOUR PREMIUM REALLY PAY FOR?

We do not just provide you an insurance policy. We do a thorough investigation of the land records, to ensure that you are buying a home with a clean title. However, we can only protect you from what title finds. Without a policy, we cannot protect against an heir who was missed three sellers prior to you! An examination is conducted by a licensed and insured title agent and then reviewed by an underwriter to determine whether the property is insurable.

Here are some examples of documents that can present concerns:

• Deeds, wills and trusts that contain improper wording or incorrect names
• Outstanding mortgages and judgments, or a lien against the property because the seller has not paid taxes
• Easements that allow construction of a road or utility line
• Pending legal action against the property that could affect a purchaser
• Incorrect notary acknowledgments

Through the search and examination, title problems are disclosed so they can be corrected whenever possible, prior to closing. However, even the most careful, preventative work cannot locate all hidden title hazards.

4. HIDDEN TITLE HAZARDS – YOUR LAST DEFENSE

In spite of all the expertise and dedication that goes into a title search and examination, hidden hazards can emerge after closing, resulting in unpleasant and costly surprises.

Here are some examples of hidden hazards that present concerns:

• A forged signature on the deed, which would mean no transfer of ownership to you
• An unknown heir of a previous owner who is claiming ownership of the property
• Instruments executed under an expired or a fabricated power of attorney
• Mistakes in the public records

Title insurance offers financial protection against these and other covered title hazards. The title insurer will pay to defend against an attack on title as insured, and will either perfect the title or pay valid claims – all for a one-time charge at closing.

Your home is your most important investment. Before you go to closing, ask about your title insurance protection, and be sure to protect your home with an owner’s title insurance policy.