Page 4 - Arizona Top Requested Flyers

WHAT IS

TITLE INSURANCE?

Title insurance is an agreement to indemnify against damage or loss from a defect in title as evidenced
by a policy of title insurance to a specific parcel or real property. Following a search and examination of
public records and in exchange for a premium paid, title insurance companies will assume the risk that
title to a parcel of real property is as stated to be in the policy of title insurance.

Types of Title Insurance (Policies) Title Companies – What they handle
Owner’s Policy: Title companies provide services to buyers, sellers,
Insures an owner of any type of real property real estate developers, builders, mortgage lenders
against loss by reason of those matters covered and others who have an interest in the real estate
under the policy of insurance for as long as they transaction. Title companies provide assurances
own the property. There are several versions that the transfer of title takes place efficiently and
of each policy. Consult with your Real Estate that your interests as an insured are protected
Professional to determine which policy is best for under the terms and conditions of the policy.
you.
Title insurance is different from many other types
Lender’s Policy: of insurances (casualty, auto,etc.). These other
Insures the priority of the lender’s security interest types of insurances assume risks by providing
over claims that others may have in the property. financial protection for losses arising from an
unforeseen future event such as a fire, theft or
accident. With title insurance, risks are examined
and mitigated before the property changes hands.

Refinancing: Why Lenders Require Title
Insurance
Your lender will want to insure that your new loan
is protected by title insurance, just as the original
lender required. Even if you already purchased a
lender’s policy, the policy remains in force only
during the life of the loan that was insured. So, if
you refinance, the old loan is paid off and a new
loan is issued with a new title insurance policy. You
will not need to purchase a new owner’s policy of
title insurance.