Title insurance: You can't afford not having it! If you are buying a home or refinancing your mortgage, you will need title insurance. Additionally, your mortgage company will require title insurance.

Title insurance is purchased for a one-time payment and is a safeguard against loss arising from hazards and defects already existing in the title.

Title insurance protects the bank against mistakes made in a title search. A title searcher, who is licensed and bonded, checks on details such as making sure there are no liens against the title, or that the person selling the property really owns it.

An error made in the title could cost you several thousands of dollars. While claims on title insurance are rare, common types of title insurance claims are for the costs of unpaid property taxes (or other liens) that were not disclosed at settlement. As a result, the coverage from title insurance is more than worth the low cost of title insurance.

Title insurance usually covers the amount of the mortgage (or mortgages, if there are two lenders). The premium is paid once, when the loan is taken out. Usually the borrower (buyer) pays the title insurance; although in Florida, the seller pays for title insurance.

If you have questions about title insurance, or you are thinking of buying a home or refinancing your current mortgage, I recommend you contact:

Leo T. White, Esquire
President
All American Abstract Title Insurance Company
1260 Valley Forge Road
Suite 111
Phoenixville, PA 19460
Tele: 610-935-4870
www.aaa4title.com