Key Takeaways
- Owner’s Title Insurance lasts as long as you or your heirs own the property, offering continuous protection.
- Lender’s Title Insurance remains active only while there is an outstanding mortgage.
- Refinancing requires a new lender’s policy, but your owner’s policy remains valid.
- Selling Your Property terminates your owner’s policy.
- One-Time Premium for owner’s title insurance provides lifetime coverage with no renewals needed.
Understanding Title Insurance Basics
When buying a home in Ocala, FL, you’ll encounter various insurance types, but title insurance is often misunderstood. Unlike other insurance that protects against future risks, title insurance safeguards against past issues that could affect property ownership.
Think of it as a safety net for your property rights. It protects against problems like forged documents, undisclosed heirs, or recording errors that could jeopardize your ownership. There are two main types:
- Owner’s Title Insurance: Protects your investment.
- Lender’s Title Insurance: Protects your mortgage lender.
At True Title of Central Florida, we ensure your ownership rights are secure with comprehensive title insurance services.
Lifetime Coverage with Owner’s Title Insurance
One of the most common questions about title insurance is its duration. Good news: Owner’s Title Insurance lasts as long as you or your heirs own the property.
Why Lifetime Coverage Matters:
- Protection Against Past Claims: Safeguards against issues even decades after purchase.
- No Renewals Needed: Coverage matches your purchase price without requiring renewal.
- Heir Protection: Your heirs inherit the same protection, ensuring multi-generational security.
With just a one-time premium, you get lasting value for your real estate investment in Ocala.
Lender’s Title Insurance Duration
Unlike an owner’s policy, Lender’s Title Insurance lasts only while there’s an outstanding mortgage. When you pay off or refinance your loan, this coverage ends.
Key Points:
- Refinancing? You’ll need a new lender’s policy.
- Protects the Lender Only: Doesn’t cover the homeowner—this is why having your own owner’s policy is crucial.
- Policy Value Decreases Over Time: Reflects your decreasing loan balance.
When refinancing or securing a mortgage, True Title ensures seamless title insurance coverage for your lender’s needs.
Events That Affect Title Insurance Coverage
Certain life events can impact your title insurance:
- Selling Your Property: Ends your owner’s policy.
- Refinancing: Requires a new lender’s policy.
- Transferring Ownership: Moving property to a trust or family member may need policy updates.
If you’re unsure, contact True Title of Central Florida to review your policy and ensure continuous protection.
Title Insurance and Property Transfers
Your title insurance policy doesn’t transfer to new owners when you sell your home. New owners must secure their own policies. However:
- Family Transfers: If gifting property to family, the existing owner’s policy may continue.
- Consult an Expert: Always confirm with your title company.
When Additional Title Insurance Is Needed
You might need additional coverage in situations like:
- Refinancing: New lender’s policy required.
- Major Property Improvements: Increases in property value may warrant an update.
- Changing Property Use: Switching from residential to commercial may need new coverage.
True Title can help you evaluate if additional coverage is necessary.
Frequently Asked Questions (FAQ)
Can I Get a Refund on My Title Insurance Premium?
No, title insurance premiums are non-refundable after the policy is active. However, if your closing is canceled, partial refunds may be available.
Does Title Insurance Cover Boundary Disputes?
Yes, some title insurance policies cover boundary disputes. Check your policy or contact us for details.
How Much Does Title Insurance Cost in Florida?
In Florida, title insurance typically costs $5.75 per $1,000 of property value. Rates can vary, so contact us for a quote.
Can I Choose My Own Title Company?
Absolutely. You have the right to choose your title company. True Title of Central Florida offers competitive rates and expert service in Ocala.
Does Title Insurance Cover Future Construction Liens?
No, title insurance protects against existing issues at the time of purchase, not future liens. Ask about specific endorsements for additional protection.
Protect Your Property with True Title of Central Florida
At True Title of Central Florida, we’re committed to providing Ocala homeowners with the best title insurance services. Whether you’re buying, refinancing, or need guidance, we’re here to help.
Contact us today to learn more about securing your property’s title with confidence.
