What is Title Insurance and Why Do You Need It?
If you’re buying real estate, title insurance is a policy that protects your investment and your property rights. There are two types of title insurance: An Owner’s title policy protects the buyer’s title to the property from certain future legal claims regarding ownership of your property and covers potential legal fees/ costs to settle claims covered by your policy. A lender’s title policy is usually required by the lender and only protects the lender’s financial interests.
'Title' is your right to own or use your property and establishes any limitations on those rights. A title search is an historical search of title to the property to uncover issues that could limit the rights to the property. Even after a title search is performed and the transfer of the property is complete, problems could arise that threaten ownership rights. Here are some examples of some common risks despite a thorough title search:
- Forged signatures in the chain of title
- Undisclosed easements
- Title claims by missing/ unknown heirs or ex-spouses, which must be defended regardless whether it is a viable claim
- Undisclosed building or use restrictions
- Claims arising out of bankruptcy
- Fraud: deception to achieve unfair gain (i.e. identity thief sells your property without your knowledge or consent, or takes out a second mortgage on your property)
- Clerical error: inconsistent paperwork and historical record
How much does Title Insurance Cost?
Owner’s title insurance is a one-time premium payment based on the value of the property and the maximum policy premium is set by Florida Statute, and it lasts for as long as you own your home.  Although there are many title insurance carriers, it is important to ensure you are obtaining a policy from a reputable and financially sound company. Waddell & Waddell, PA issues policies underwritten by Old Republic Title Insurance, one of the most reputable and financially sound insurance companies in the State of Florida.
Your title insurance policy will provide your coverage terms, any exceptions to coverage, and any endorsements to your policy coverage. As a title agent, Waddell & Waddell, PA will provide you with the terms of your coverage being provided by the underwriter and can answer any questions you may have about the policy coverage.
 Some restrictions apply.