Title Insurancemakes certain that the transfer of ownership of your new property happens smoothly, and that you have protection against future claims against the property. During escrow, the title company will perform an extensive search and analysis of all recorded documents attached to your property. You will receive “preliminary title” almost immediately upon opening escrow, and this gives the title company time to complete any investigations and fix any problems before close of escrow.
Although a complete search is performed before closing escrow, you still require title insurance because it is possible that some problems with title may go undetected. Overlooked items that did not show up in the initial title search may show up later in your ownership. Title insurance protects you against these problems and claims.
In a new loan, the buyer traditionally pays for the lender’s policy. It is also customary for the seller to pay for the owner’s policy. Title insurance only needs to be paid for one time at the close of escrow. This insurance has no renewal costs, and cannot be cancelled. It continues to protect you as long as you own the property.
Homeowners Insurancefor your investment property is exactly the same insurance that you purchase for your primary residence including liability, theft, damage, etc. It is required for the purchase of your investment property. If possible, it is often cheapest to procure homeowners insurance through your own primary residence carrier. However, in a circumstance where that is not possible, there are many major providers that can provide coverage for your investment property at very reasonable rates.
Leagan Realty is a Scottsdale Based Real Estate Brokerage Company servicing the entire Valley of the Sun. For all your real estate needs, contact us at:
Shop the MLS for Free at: http://www.LeaganRealty.com
us on Facebook at: https://www.facebook.com/LeaganRealty