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Fee/Owner Insurance
Owners Policy – Why Is It Important?
Who Needs It: Anyone looking to buy a home or property.
What Is It: An owner’s title insurance policy protects you as the property owner and your equity up to the full sale price of the property. Unlike mortgage policies, owner’s policies do not decline in value over time. A separate market value rider can also be purchased with the owner’s policy, to keep pace with inflation and insure to the full market value of the property as it rises over time.
Moreover, an owner’s title insurance policy premium is paid just once, and covers you forever, not just for the duration of your ownership of the property. It provides you with:
- Free expert legal defense of title in case of a claim.
- Reimbursement, from the title insurer (underwriter), up to the full value of the sold property if the defense should fail.
- Long-term peace of mind. If a title claim is ever initiated against you, even after you have sold the property, you and your heirs will still be covered by your owner’s policy on that property.
Only an owner’s title insurance policy can protect you from financial damages as a result of a claim against your ownership. For these reasons, an owner’s title insurance policy is perhaps among the least expensive, yet most important insurance you can buy.
Before Purchasing A Home Or Property Ensure You Have Fee/Owner Title Insurance
Why It Matters: Most of us finance a property through a bank or mortgage company. These lenders have title insurance to protect their investments, but it is important to know that these policies do not cover you.
Many people mistakenly believe that the lender’s policy covers the buyer from the risk of a title claim. But most title claims do not affect the bank’s interest in the property. A neighbor’s encroachment, the discovery of an easement, improperly indexed tax records, or restrictions on your use, may affect your financial interest in the property, but not the lender’s.
The SMPR Difference: For over fifty years, SMPR has been insuring titles throughout New York and neighboring states. We perform an exhaustive research process on a property’s history and guide each client through the complex demands of modern real estate transactions.