Title insurance is very different than most other types of insurance policies.
Title insurers work to identify and eliminate potential risks and, therefore, prevent losses caused by title defects created in the past. However, there is always the possibility of unknown, undisclosed or hidden title defects.
There are two types of title insurance policies:
Lender's title insurance, also called the loan policy, which protects only the lender's interest in the property and only for the life of the loan. Every commercial lender will require that a loan policy of title insurance be issued in consideration of making a loan to a purchaser. However, once the loan is paid off, the coverage provided under the policy expires.
Owner's title insurance protects the purchaser's interest in the property and that coverage continues for their lifetime. Owner's coverage is important because liability for title defects can survive beyond the ownership interest of the purchaser.
A one time premium paid by the purchaser at the time of the closing provides a standard owner's title policy insuring against prior title defects or claims made against title even after the future loan payoff or sale of the property.
Title insurance offers protection against claims arising from various defects as set out in the policy itself. Even if a claim against the insured property is not valid the protection of owner's title insurance remains important because the policy provides for defense of such claim. When a title underwriter provides a legal defense against a claim covered by the policy, the savings to the insured for that legal defense greatly exceed the one time premium.
Loudoun Commercial Title, LLC is a licensed agent for two of the nation's largest and most secure title underwriters. If a claim is ever made against the title to your property, these underwriters have the financial security and professional integrity to defend the claim and protect your interest as their policy holder.
There are few things more important than protecting your investment in real estate.
Owner's Title Insurance has been offered for more than 150 years, because even the best title search and examination cannot protect your equity and home from matters not appearing in the public record.
You may wish to obtain title insurance coverage, including affirmative coverage for mechanics' liens. Title insurance will insure you against loss or damage, resulting from defects in the title and pay defense costs in the event of a challenge to your title. "Defects in title" include, but are not limited to:
Loudoun Commercial Title, L.L.C.
