FAQ:

What does title insurance cover?

Basic title insurance coverage includes:

  • Protection for financial loss—up to the face amount of the policy—due to covered claims against your title.

    Payment of legal costs to defend against covered claims.

  • Payment of successful claims against your title, up to the face amount of the policy.

  • An unrecorded title defect revealed after closing resulting in a loss of value.

  • Conveyance of title irregularities arising from a deceased person's estate, a bankruptcy estate, or trust.

  • Identifies restrictive covenants limiting your use of the property.

Detroit Title and Escrow can also offer additional coverage for potential losses not named above.

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FAQ:

Why do I need title insurance?

Title insurance protects you and your lender from losses resulting from claims against your ownership of real estate. It is unique because it provides coverage for problems or "hidden risks" (errors, forgeries, unpaid taxes, etc.) that possibly occurred before you took title to the property, yet can jeopardize your ownership rights.

 

What’s the difference between a lender’s policy and an owner’s policy?

There are two types of title insurance policies Detroit Title and Escrow can issue: a lender's policy (sometimes called a loan policy) and an owner's policy. 

A lender's policy protects the lender's investment by paying the mortgage in the event that a title defect voids the buyer's title to the property. Typically, a lender's policy does not represent the full property value and the amount of policy protection decreases as the mortgage balance decreases over the life of the loan and terminates when you pay off the mortgage.

An owner's policy protects the landowner/homeowner against the specific types of claims listed in the policy, usually purchased to cover the full property value. While lenders generally require a lender's policy as part of the real estate transaction, an owner's policy is usually optional but strongly recommended. An owner's policy protects the owner against loss of title, which insures up to the value of the property and lasts as long as you or your heirs retain an ownership interest in the property.