Before we explain what a title insurance company is, it’s important to understand what insurance is. Let’s say you bought a property and after a few months, someone came and claimed the same property as his. You can visit https://www.clearskiestitle.com/estimate/ for an affordable title insurance quote in New Jersey.
File a complaint against that person or try to tell them you own the property and just bought it? This is where property insurance comes in. Insurance not only protects against financial loss due to lack of real estate ownership but also against mortgage foreclosures.
In addition, this insurance protects the financial interests of the owners and creditors. Now the real estate companies in Philadelphia are the ones who offer property insurance. What these companies do is carry out the monotonous task of researching legal property to find out who the rightful owners are and whether the property will be confiscated.
According to federal law RESPA, ie. The Real Estate Settlement Procedure Act gives homeowners the right to choose an insurance company when buying or refinancing residential property. No attorney, broker, or bank can dictate to any homeowner which insurance company to choose.
Insurance companies not only carry out proper research and verification of property ownership but also learn about the rights and limitations of their use.
Remember that property insurance costs depend on the value of your property and you only have to pay once. Insurance covers your interest in the property as long as you don’t sell it.