How Title Insurance Can Protect You From Loss?

It is possible that something has been lost and someone could make a claim against your property. Most likely, however, it is that a previous owner had given permission to another person to use the property in any way without recording.

You can also calculate title insurance cost, NJ & get quote at Clear Skies Title Agency.

An example of this would be if a previous owner gave verbal permission to use a neighbor of the property for a specific use. Unless it was documented and presented, it is unlikely that an agreement of this type was presented in a title search.

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How do title insurance works?

Title insurance works by protecting you from defects in title. These defects occurred before the date of your policy being issued and before taking possession of the property.

Title agencies will investigate the history of the property and identify defects in the title. While issuing a policy they fix the defects.

Note that this is very different from most other types of insurance such as homeowners insurance, which protects you from future events that are not seen. So, what to do if someone makes a claim against your property?

Check your policy

The first thing you should do is check your title insurance policy to determine whether the claim or use is specifically excluded from it. It is possible that this specific use was named exclusion and forgot about it.

If the claim does not appear as exclusion, then you may indeed have a case and need to contact your agency real estate securities.

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