About Security Title
What is Title Insurance?
Title Insurance assures property owners that they are acquiring marketable title. Unlike casualty insurance policies, which insure against future events, title insurance is designed to eliminate risk or loss caused by defects in title from past events. Title insurance provides coverage only for title problems that were already in existence at the time the policy was issued.
There are two types of title insurance:
- Owner's coverage
- Lender, or mortgage, protection
Owners title insurance ordinarily is issued in the amount of the real estate purchase and lasts as long as the insured--or his/her heirs--have an interest in the property concerned. This may even be after the insured has sold the property. The amount of lenders title insurance decreases and eventually disappears as the loan is paid off. Most lenders require mortgagee title insurance as security for their investment in real estate, just as they may call for fire insurance and other types of coverage as investor protection.
Because of title insurance, home buyers can enjoy complete protection against claim and loss. When title insurance is provided, lenders are willing to make mortgage money available in distant locales where they know little about market conditions. Title insurance issued through Security Title of Davis County, Inc. offers the unique safeguards that are essential for secure investment by both real estate purchasers and lenders.