Understanding Title Insurance

For most people, purchasing a home is the single largest investment they will ever make. Not only that, but it is where you will live with your family in most cases, so you don’t want to leave anything to chance.

In most situations, one of the best ways to eliminate a lot of risk on this investment is to be provided proper title insurance. This type of insurance can help give you peace of mind while purchasing the property—and long after.

What Is Title Insurance?

Title insurance offers protection in the event that the property you purchase has a particular lien, claim, or encumbrance on it when you made the purchase. If this type of thing is discovered down the road, the title insurance company will make a determination whether the coverage is in place and step in and pay it off so that you, the new owner, doesn’t have to worry about having to come up with the money owed, or even end up losing the property.

Who Does Title Insurance Protect?

This type of insurance offers protections to both the person purchasing the property (you) and the lender involved, typically a mortgage company. Having this title insurance reduces the overall risk involved with both of these parties so they can proceed with the transaction without worry that something is wrong with the title of the property. In addition to just providing coverage in the event that a particular lien is found, most title insurance policies will also cover the costs of a legal defense should it be needed.

Is Title Insurance Just Like Other Insurance?

Not exactly. While it does provide financial protection in the event that some things go wrong later, just like other insurance policies title insurance goes a step further. When providing a policy, the title insurance company will do in-depth review on the title on the front end in an  attempt to discover any problems ahead of time. If they find nothing wrong, the transaction will move forward like normal, and the title insurance will only need to step in if something is discovered and an exclusion is raised early on.

How Often is a Claim Made?

In our opinion, of all the insurance types, title insurance is the least likely to have a claim made against it. This is because such an extensive examination is performed ahead of time to dramatically reduce the risk of a lien or other problem being discovered in the future.

Help When You Need It

If you are engaging in any type of real estate transaction, or you’ve discovered a problem with your title, make sure you have the legal help you require. We have years of experience representing clients throughout Chicago and the surrounding area, and would be happy to help. Contact us [Link to CONTACT US page] to set up a consultation and see what we can do for you.

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Auricchio Law Offices

Auricchio Law Offices in Chicago provides a complete range of real estate services. We facilitate residential and commercial real estate transactions, advise and represent condominium associations, and represent property owners in real estate litigation. Whatever your real estate issue, we will work diligently to achieve your goals in a timely and efficient manner.

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