Title Insurance

Protect Yourself With Title Insurance

What is title insurance? Protecting purchasers against loss is accomplished by the issuance of a title insurance policy, which states that if the status of the title to a parcel of real property is other than as represented and if the insured suffers a loss as a result of title defect, the insurer will reimburse the insured for that loss and any related legal expenses, up to the face amount of the policy.

Title insurance differs significantly from other forms of insurance. While the functions of most other forms of insurance insure for losses arising out of unforeseen future events, such as fire or accidents, the purpose of title insurance is to eliminate the risks and prevent losses caused by defects in title arising out of events that have happened in the past, prior to the buyer purchasing the property.

To achieve this goal, title insurers at Hometown Abstract & Real Estate Services in Danville, PA perform an extensive search of the public records to determine whether there are any adverse claims to the subject real estate, with most searches covering a minimum of 60 years.

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Benefits of a Title Insurance Policy

The purchaser of real estate needs protection against serious financial loss due to a defect in the title to the property purchased. The purchase of a home is one of the biggest expenses one will make in his or her lifetime. For a one-time fee paid at closing, a buyer can receive the protection of a title insurance policy; a policy that is backed by the reserves and solvency of the title insurance company.

A title insurance policy will cover both claims arising out of title problems that could have been discovered in the public records, and those so-called "non-record" defects that could not be discovered in the record, even with a complete search. See the Pennsylvania title insurance rates here.

A title insurance policy will not only protect the insured owner, but also that person's heirs for as long as they hold title to the property, and even after they sell by warranty deed. The title insurance company will not only satisfy any valid claim made against the insured's title, but it'll also pay for the costs and legal expenses of defending against a title claim.

Lender's Policy of Title Insurance

The lender’s title insurance policy works generally the same way as the owner’s policy of title insurance, but only protects the lender and not the purchaser. The lender’s policy is based on the total loan amount, and the amount of coverage decreases as the loan amount decreases and eventually disappears after the mortgage is paid off.

The lender’s policy of title insurance is insuring the lenders that they have a valid first lien position on the property being purchased or refinanced. We offer FREE fax and copy services at Hometown Abstract & Real Estate Services. Call us at (570) 275-6330 for an appointment that fits your schedule.