Title insurance is the form of insurance with the most indescribable purpose. Most people have, or think they have, the vaguest definition of title insurance and what it covers, what time frame it spans and when payments are due. Title insurance functions in ways contrary to other types of insurance. Most forms of insurance cover you from issues that could occur in the future, title insurance covers you from the past of your property. Past owners, claims from people who may have been given the home in a will from a past owner, or encumbrances on land from neighbors or the city. The tricky part of title insurance policy becomes the potential dates of measurement for the policy. There are three options: “Date of Purchase”, “Date of Defect Creation” and “Date of Discovery”. We will do a deep dive on all of these, that way you understand the nuances involved in each.
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