Powell Abstract Company, Inc., is proud to be an agent for Stewart Title Guaranty Company; Chicago Title Insurance Company; Fidelity National Title Insurance Company; and Old Republic National Title Insurance Company. Every policy of title insurance issued by Powell Abstract is based on an examination of title done by an experienced title attorney.
Title insurance is more than just another “cost” added on to your real estate transaction. Title insurance is an essential part of most modern real property transactions. It is exactly what its name says it is. It is an insurance policy that protects you as a buyer and ensures that you’re getting what you’ve contracted to buy, free of any liens, free of any claims, free of anything that might impede or affect your quiet enjoyment of true title to the property you’ve purchased.
Title insurance is different from other types of insurance in that it protects you, the insured, from any loss that may occur from title matters or defects that arose in the past. Other common types of insurance such as auto, home, life or health policies cover you against losses that may arise for occurrences in the future. Title insurance does not protect against any future title issues but against those faults against title that may have occurred in the past, things such as forged deeds, invalid documents, unrecorded easements, tax and judgment liens, and any undiscovered or unrecorded ownership interest in the property. Your policy doesn’t expire or lapse and you never have to pay an additional premium to continue your coverage. As long as you own the property in the name in which you acquired it, your policy of title insurance will cover your property from title claims resulting from any past title issues or defects. If someone else places a claim on the covered property, your policy of title insurance protects your valuable investment and will pay the cost of defending the title to your property.
As a lender, title insurance protects your real estate collateral and gives you piece of mind knowing that your loan is truly and validly secured by real property and that your lien on that property is insured for the value of your loan against any prior title claims.
In most states, Texas included, the state insurance commission or some other governmental body controls the premium rates for title insurance policies. The premium is not a recurring payment. You only pay once for each policy of title insurance and the premium cost depends upon the purchase price of the property and your policy amount must be equal to that purchase price. For lenders, the policy premium is determined by the loan amount.
Essentially, the function of the title insurance industry is to ensure that real estate transactions are conducted efficiently and transparently. After real property transactions are completed, buyers and lenders should have the security of knowing that their valuable investments are protected against any loss due to title issues. This is what the title insurance industry provides.
Below are links to a few helpful articles and information explaining the title insurance industry as well as links to our insurance underwriters and rate information:
Home Security: Understanding and Negotiating Title Insurance
Taking Title: The Industry Offers Peace of Mind
Seller Beware: Understanding the General Warranty Deed
TLTA Title Insurance FAQ's
Stewart Title Company
Chicago Title Insuance Company
Fidelity National Title Insurance Company
Old Republic National Title Insurance Company