Title insurance is a contract to indemnify against losses
arising through defects in title to real estate.
As a rule, a title company will not insure a bad title any
more than a fire insurance company will issue a policy on a burning building. However,
title companies can sometimes overcome some technical objections that might be raised by a
title examination.
In simple terms Aquebogue
Abstract Corp. represents that its underwriters agree:
1. To defend your title in the courts, as insured, at its
own expense.
2. To correct or clear the title when possible.
3. To promptly pay you for your loss in the event of an
unsuccessful defense of your title.
Why Title
Insurance?
When you buy a computer, a television set, a car, you
usually have no need to know whether the former owner is married, single or divorced. You
are not interested in whether or not the owner has paid taxes or if there are lawsuits or
judgments against the owner.
When you buy a home, though, it is necessary to have all
that information...and a great deal more.
Whenever you consider the purchase of real estate, you
should be aware that there may be others, in addition to the owner, who could have
"rights" in the property you are acquiring. There may be a work contractor,
governmental agency, or any number of individuals who have perfectly proper claims against
the property.
Many people say: "But I have a deed. Isn't that all I
need ?
No. A deed is not proof that the seller actually is the
owner. Nor does it contain information regarding the rights others might have in the
property.
"Can't I find out about their rights from the public
records?"
Yes, most of them. A careful investigation of all matters
of record by competent individuals can disclose items such as unpaid taxes, mortgages,
easements, restrictions etc. However, all of the necessary information is not contained in
a single book,in a given office, or even in the same city. Plus, there could be possible
errors in indexing, improper searching, and errors in examination; in other words, the
human element.
Two Kinds
of Policies
A bank or mortgage company will require a title policy for
its own protection. Their policy protects only the lender.
To protect against the many possibilities of loss due to
title defects, a purchaser should purchase an owners title insurance policy.
The cost of the owner's policy of title insurance is small
when related to the value of the property.
One, Low
Premium
A low, one-time premium is all you pay to obtain the
protection and peace of mind of a title insurance policy issued by Aquebogue Abstract Corp. So long as
ownership remains in your name or that of your heirs, there is no additional cost. The
policy is issued in an amount equal to the purchase price you pay. Of course, the greater
the coverage given, the higher the premium.
Title
Companies and Abstract Companies
A TITLE INSURANCE COMPANY is licensed and must maintain
reserves to cover possible claims. Conditions for this are set by the State of New York
Insurance Department.
An ABSTRACT COMPANY or TITLE AGENCY is authorized by one or
more TITLE INSURANCE COMPANIES to issue policies under their name.
Whether you use an abstract company or a title company, the
premium will be exactly the same as established by the Superintendent of Insurance of the
State of New York.
Market
Value Policy Rider
A market value rider, when made a part of an owner's
policy, insures you for the market value of your home at the time of claim. The cost is an
additional 10% of your premium and like all title costs is paid only one time. Should you
choose not to obtain this rider you will be asked to sign a statement acknowledging that
you were advised of its availability.
