Frequently Asked Questions
Question: What is title insurace?
Answer: Title Insurance is an insurance policy that protects you as the insured against problems with regard to ownership that occurred before you became the owner of the property. Title Insurance also defends you against anyone filing a claim against your property, which can be a costly and time-consuming process.
Question: What does title insurance protect me from?
Answer: Just as your homeowner's insurance policy protects you from losses due to fire and theft, title insurance protects the insured from hidden risks. The difference is that the premium for title insurance is only paid once and coverage continues until the property is sold or transferred. Hidden risks might include such things as:
- Fraudulent or forged documents
- Clerical errors
- Documents signed by persons lacking mental capacity
- Documents signed by minors
- Unknown heirs claiming title
- Misinterpretations of wills
- Improper legal descriptions
- Executions using expired or revoked power of attorney
- Titles taken as a result of improperly-probated estates
- Improperly-indexed liens or judgments against prior owners
- Recording errors
- Claims by spouses having a homestead interest
Question: Are there different types of title insurance policies?
Answer: Yes, there are three basic types of policies. The first is an Owner's Policy, which protects the interests of the property owner, the second is the Lender's Policy, which protects the interest of the lender, and the third is a Leasehold Policy, which protects the interest of the tenant. The owner's and lender's policies are by far the most-widely issued.
Question: When Does Title Insurance Expire?
Answer: An owner's policy remains in force until the property owner (insured) transfers title to the property to another person or entity. A lender's policy terminates when the insured mortgage is satisfied and the leasehold policy terminates at the end of the lease period.
Question: Is All Title Insurance The Same From All Companies?
Answer: There is a difference in title companies and their agencies. Glow Title & Escrow is a proud agent for Commonwealth Land Title Insurance Company, a subsidiary of LandAmerica Financial Group (see http://www.landam.com/home.htm) and Fidelity National Title Insurance Company (see https://www.fntic.com/). Commonwealth and Fidelity are two of the nation's foremost underwriters. It is vital to select a company that has an excellent reputation and whose underwriters set the standards in the industry.
Question: Can I get credit towards a new policy if I have an owner's title insurance policy?
Answer: Maybe. If you are selling the property and purchasing an owner's title insurance policy for your buyer, you may be entitled to what is known as a reissue credit if the effective date of the owner's title policy issued to you at the time you purchased the property is less than three (3) years' old when title is transferred from you to your buyer. If you are refinancing the property, you may receive a reissue credit if you present a prior owner's title insurance policy, irregardless of the prior policy's effective date.
Question: How do I know how much my reissue rate is?
Answer: Reissue rates are promulgated by the State of Florida Department of Financial Services. Please feel free to call one of the Gals at Glow Title and we'll be happy to give you a free quote.
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