Unlike normal insurance that’s purchased to protect you from future accidents such as car insurance or life insurance, title insurance is purchased to protect your home from any pre-existing title issues. Before you purchased your mobile home, chances are that it was owned by someone else. In simple terms, this can be referred to as a policy that indemnifies or protects you and the policy lender against issues relating to your home’s property title before the current policy. These problems vary and may include instances where there are real estate taxes that remain unpaid, liens against the property such as foreclosure which are unresolved or forged signature from a past title transfer.
Prior to issuing you with any title insurance, the title company is bound to send you what’s known as a preliminary title report. This is usually issued after the company has searched public records to ascertain whether the property has a clear title. The report usually lists all the liens and encumbrances on the property; these are typically identified as exceptions in the report. The implication is that any title insurance will not cover these exceptions, meaning that you are buying the property subject to the identified exceptions. You should therefore work to remove exceptions that work against you prior to closing the purchase.
There are basically 3 types of insurance. These are a basic lenders policy that’s bought by lenders and other banks, owner’s policy and an extended owner’s policy. A basic owner’s title insurance cover is usually provided in the amount of the real estate purchase price and can be purchased fora onetime fee. The insurance does last for as long as your heirs or yourself maintain an interest in the property. Even though the premium charged does vary from one state to the other, it is in most instances one percent of the buying price of the property.
Lenders title insurance is a legal requirement in many states prior to closing a mortgage. It is important to note though that this insurance does only protect lenders up to the mortgage amount and doesn’t protect the buyer’s equity or interest in the property . An extended owner’s title insurance usually covers a wide range of issues such as building permit violations, living trusts as well as title forgeries.
It is worth mentioning though that the most common claims which are filed against most titles are mainly back taxes which may have been for one reason or the other been overlooked when researching a sale, wills related to the property that conflict and easements. Further to the above, there are several ways in which as a homeowner, you may save some cash on your title insurance. One of the easiest ways is to ask the seller of the property to make good by paying for your policy. In some states, this is a legal requirement of the seller while in other states; you can negotiate this amongst yourselves.
You should also investigate if you can get the running title policy on the house re-issued to you by the attorney undertaking the new search or by the company that is issuing the title. This can save you several hundred dollars since it does imply a less involving search. If you are buying a new policy in addition addition to the lenders policy, you should keenly go through your current title policy for exceptions. In the event that you have exceptions which are a concern, feel free to talk to the title insurer and ask if they can be removed from the policy, this may save you some hundreds of dollars as well.
Mobile Home Title Insurance – Recommendations
Here are some of the leading mobile home title insurance companies in the market.
1) Liberty Insurance
Mailing Address: 175 Berkeley Street Boston, MA 02116
Phone Number: 1-800-837-5254
Web URL: http://is.gd/KWSzVF
Other Products: the company does offer a wide variety of products in the Auto and Vehicle, Property and Life, Family and Health sectors. The products include Car, Motorcycle, Boat & Watercraft, Renters, Condo, Homeowners as well as life insurance policy.
Mailing Address: 980 Fredericksburg Road San Antonio, TX 78288
Phone Number: 210-531-8722
Web URL: http://is.gd/8NTKQv
Other Products: the firm does offer several insurance policies such as flood insurance, valuable personal property insurance, umbrella insurance, home value monitoring , home security insurance as well as home security insurance policy.
3) Farmers New World Life Insurance Company
Mailing Address: 3003 77th Ave SE Mercer Island WA 98040
Phone Number: 1-888-327-6335
Web URL: http://is.gd/oZRbYm
Other Products: the company does offer a wide array of insurance covers such as Auto insurance, Recreational insurance, Home Insurance, Life Insurance and Business Insurance.