There are two types of title insurance: owners and lenders. Lender's protection protects the lender in case their interest in the property becomes subject to unpaid liens, encumbrances, or challenges to the title. Lender coverage is required for most mortgage loans.
Optional owner's title insurance The cheapest insurance that a buyer will ever buy is owner's coverage. The buyer's ownership interest in the property is protected for as long as the buyer owns it.
The title insurance agency in NJ will protect the buyer's rights if someone challenges his title or if there is a lien that should have been paid before closing.
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The owner's insurance policy, unlike other types of insurance, requires a one-time fee. The premium amount is determined by the property's value and can vary between title companies. The coverage will be valid for as long as the buyer is the owner of the property, as mentioned above.
Many title insurance companies in NJ offer simultaneous issue options. A buyer who purchases the insurance the day before closing will be eligible for a discount on the lender’s policy.
Buyers should ask their closing agent or attorney about the concurrent issue rate for the title company through which they have written their policies. Remember that if the buyer does not purchase the owner's coverage, he must pay the entire premium for the lender.
Reissue rates are also offered by title insurance companies in NJ for refinances. Reissue rates let borrowers pay for coverage based on the difference in the current loan amount and the original lender's policy.
The title insurance company has all the necessary information to help you file a claim if it becomes necessary. You should be prepared to give the title company a detailed explanation and supporting documentation.