We looked into ct home insurance and title coverage yesterday, however we feel that we need to dive deeper into this topic today, so that you have all the facts and can you them in your future endeavors. Today we are going to break down how each party- the buyer, the seller, and the middle man- are involved in a real estate process and how title coverage comes into play.
-A Lenders’ Policy is a type of policy that doesn’t cover the owner’s interest in the property, and furthermore is issued by the mortgage lender. The initial policy limit should be equal to the amount of the mortgage, and with this, the limit decreases each year, and is complete when the entirety of the loan is paid off.
-An Owner’s Policy is a policy that protects the owner’s interest for the full purchase price of the property. Most sellers pay for this policy as part of their obligation to deliver a clean title to the buyer. Good thing to know!
-A Construction Policy which can be purchased when land is being developed for the first time, as the land is likely to have had prior owners. When you invest in this policy, a title search will uncover any existing liens on the land or property, and a survey will determine the boundaries of the property being purchased. If the builder fails to pay subcontractors and suppliers, title insurance covers the new owner against any lien on the property.
While this may not be the most exciting topic we’ve ever discussed, it none the less is very important when dealing with title insurance. So the next time you are in need of any CT home insurance, stop by Paradiso Insurance today for the best quote in town!