Mona Hellinga
847-814-1855Cell Phone: 847-814-1855
Phone (Other): 847-615-5000
Office Fax: 847-295-1900
Direct Fax: 866-730-7097
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Why Buy Title Insurance?
What is Title Insurance?
Title Insurance protects you against risks and losses caused by flaws in title arising from events that happened in the past. Simply put, it protects you against loss due to defects that were not discovered at the time of the sale. Fort Dearborn Land Title insures your “peace of mind.” A one-time premium guards you against title claims that may arise in the future.
Two Kinds of Title Insurance
There are two types of title insurance – a lender's title policy and an owner's title policy. To protect their interest in your property, mortgage lenders require buyers to purchase a lender's title policy. But a lender's policy does not protect your interest as the homeowner.
Your protection comes from an owner's title policy, purchased at closing and lasting as long as you or your heirs have an interest in the property. Having an owner's policy will pay for all court costs and related fees associated with any covered title risk. If a claim is found to be valid, your actual loss – up to the face amount of the policy – is covered.
Why is Title Insurance Important?
Specifically title insurance protects you against:
- Another owner who has an interest in the title
- Improper handling of documents, such as a form that is not correctly signed, sealed, recognized or delivered
- Questions of fraud, incompetence, coercion or impersonation
- An improperly recorded document
- Liens on the property that exist because of a deed, trust, previous marriage, judgment, tax, assessment, or an outstanding charge by a condominium or homeowners association
- Liens on the title, either present or future, that arise from material or labor furnished prior to the policy date (unless payment had been agreed upon)
- Other faults and/or encumbrances such as mortgages, leases, easements or restrictions
How Much does Title Insurance Cost?
Title insurance rates are based upon market rates within the state. The one-time investment is directly related to the value of your home; the lender's policy is based on the loan amount and the owner's policy is based on the home's purchase price.
Did You Know ...
- $1.06 billion in title insurance claims were paid out nationally in 2008 by title insurance underwriters.
- Out of every 1,000 transactions, 249 titles are corrected prior to insuring, avoiding consumer losses.
