400 Creekside Drive, Suite 407-409 Pottstown, PA 19464

Choosing Your Home's Title Insurance In Pottstown, PA: A Basic Guide

Monday, January 18, 2021

As a homeowner, choosing the right title insurance for your house determines your income to upkeep ratio for years to come.

In the state of Pennsylvania, there are more than 5.7 million owner-occupied housing units. With such a high number of homes in the area, it can be challenging the make the right choices for you and your specialized housing arrangement.  

For homeowners looking for the best, check out this basic guide on choosing your home's title insurance in Pottstown, PA.

Read on to learn more.

Understanding What Is Title Insurance

To better decide the title insurance in Pottstown, PA, right for you, it's important to first understand what is title insurance. Title insurance is a policy designed to protect you from financial loss and accompanying legal fees with respect to your housing.

Title insurance will keep you safe from any financial loss directly related to your property. There are two primary types to consider:

  • Lender's policy
  • Owner's policy

An owner's title policy, also called owner's title insurance, provides the homeowner with a safety net if someone tries to sue due to an alleged claim against the home before said homeowner purchased the home. 

Common reasons to sue include:

  • The previous owner failed to pay taxes 
  • Contactors assert they were not paid for work done on the property

lender's insurance policy is almost always required and protects financial payments made towards a home. An owner's policy protects you and your finances after the purchase has been made. 

People Who Need Title Insurance

For the best title insurance policy for you, consider who needs it. A title insurance property is perfect for any potential buyer looking to buy a commercial, residential, or industrial property.

Without a proper title insurance policy, your stake in the property could be at risk should there be an issue with the payment process. Title insurance is important for any buyer who wants to protect themselves from potential financial downfall.

Whether you have an industrial, commercial, or residential property, you can benefit from a title insurance policy. Speak with trusted professionals to find out which title insurance policy works best for your needs. 

Cost of Title Insurance

To calculate your policy cost, it's important to consider a variety of factors. The first step is to decide if you should purchase a standard title or an enhanced policy

The primary difference between a standard title and an enhanced policy is the former doesn't cover Mechanic's Lien. Mechanic's Lein is a type of security interest. It is obtained by any person who spends time or materials building your property.

This security interest most often stays in effect until the tenant has paid this person of these persons in full. An example of the type of people who qualify as a mechanic's lien include people such as:

  • Construction team
  • Supplier
  • Design professional
  • Materialman
  • Supplier
  • Artisan

A standard policy also doesn't cover the forced removal of a building structure due to violations of existing zoning law, violations of restriction in Section B, and if the structure in question continues onto another easement or property.

A violation of Section B may include the use of the land as a single-family residence.

The standard-title also doesn't cover post-policy violations such as post-policy forgery, post-policy encroachment, post-policy prescriptive easement, and post-policy damage from the extraction of water or minerals. 

Additionally, building permit violations, discriminatory covenants, violations of building setback regulations, and maps not consistent with the legal description given will not be covered by the standard title.

The enhanced policy covers all of the aforementioned policies in addition to many other benefits. The enhanced policy will pay rent for substitute lands or facilities. As the tenant, you'll also have rights under unrecorded leases and subdivision of law violation. 

Perhaps best of all, the enhanced policy has a post-policy inflation coverage of 150 percent over five years and a post-policy for Living Trust Coverage, which places your assets in a trust during your lifetime and details where these items will go after death.

These assets include things such as:

  • Investments
  • Real estate
  • Bank accounts
  • Vehicles
  • Personal property

Both the standard title and enhanced policy make sure all conditions of the property sale are met before and throughout the payment process. They ensure a safe, reliable, and risk-free closing service for industrial, commercial, and residential areas.

The true cost of title insurance differed from state to state. It is often a policy that is paid for with a single downpayment. Without a trusted buyer's service, your large monetary transaction may be at risk. 

Choose an experienced team, like Heartland Abstract, comprised of a highly trained team of realtors, attorneys, and title agents. This multifaceted approach derives several different expertise to create the best possible policy for you.

Choosing Your Home's Title Insurance in Pottstown, PA

Choosing your home's title insurance can be an intimidating process. Traditional title companies generate fees for real estate agencies. Not us. With the help of our experienced title agents and attorneys, Heartland is different.

We ensure the safe and reliable transfer of money between a prospective tenant and buyer and provide our clients with peace of mind and financial security. 

What are you waiting for? Your perfect, personalized insurance product awaits!

Want to see more posts like this one? Check out the rest of our blog to learn about quality insurance products for real estate in Pottstown, PA. We promise your next transaction will be smooth and swift with the help of our specialized team. 

View All Recent Posts