How to Make the Most of Title Insurance in Denver

Title insurance is one of the most important investments you can make when purchasing a home in Denver. It’s an essential safeguard that protects you against unforeseen issues with the title to your property, such as undisclosed liens, ownership disputes, or fraudulent claims. While many homebuyers understand the basics of title insurance, it’s important to know how to maximize its benefits and ensure you're fully protected throughout your property ownership. In this blog post, we'll explore how you can make the most of your title insurance policy in Denver and ensure that you are getting the protection you deserve.

1. Choose the Right Title Insurance Policy

The first step to making the most of title insurance is selecting the right policy for your needs. There are two main types of title insurance: the owner’s policy and the lender’s policy.

• Owner’s Policy: This policy protects the buyer from any title defects that may arise after the property purchase. It is highly recommended for any buyer, as it offers protection against financial loss due to issues such as unknown heirs, fraud, or outstanding claims on the property.

• Lender’s Policy: This policy protects the mortgage lender’s interest in the property and is typically required by the lender as a condition for the loan. It does not provide protection for the buyer.

While the lender’s policy is important, it’s the owner’s policy that provides comprehensive protection for the buyer. If you’re purchasing a home, it’s a good idea to make sure that you are covered with an owner’s policy in addition to the lender’s policy.

2. Understand What’s Covered and What’s Not

To make the most of your title insurance, it’s important to understand exactly what is covered under your policy. Common issues covered by title insurance include:

• Liens: If there are any undisclosed debts or liens on the property (such as unpaid property taxes or contractor liens), title insurance will cover the cost of resolving those issues.

• Ownership Disputes: If someone claims to have ownership rights to the property that weren’t disclosed, your title insurance will cover any financial loss resulting from that claim.

• Fraud: If someone forges a signature or commits other forms of fraud in connection with the property’s title, title insurance provides coverage for those incidents.

• Undisclosed Heirs: In the unfortunate event that an heir comes forward claiming ownership of the property, title insurance will protect you.

However, title insurance doesn’t cover all potential risks. For example, it does not cover issues like zoning violations, damage to the property itself, or problems that arise from your actions after the purchase. It’s important to discuss these limitations with your title insurance provider before making a decision.

3. Maintain an Updated Policy

Another way to make the most of your title insurance is to ensure that your policy stays up to date. If you make any major changes to the property, such as adding new structures, splitting ownership with another person, or refinancing your mortgage, these changes could affect the coverage offered by your title insurance policy.

If you’ve made any changes to the property, be sure to talk to your title insurance company and update your policy as needed to maintain the protection. In some cases, an additional endorsement to your policy may be necessary to ensure you are fully covered.

4. Work with a Trusted Title Company

One of the most effective ways to make the most of title insurance is by working with a reputable title insurance company. Your title insurance company is responsible for conducting the title search and ensuring that there are no issues with the title before you purchase the property. They also provide claims assistance should any issues arise after the sale.

Choose a title company with a strong reputation for excellent customer service and experience in the Denver real estate market. A good title company will guide you through the title insurance process, answer any questions you have, and provide ongoing support throughout your property ownership.

5. Keep Your Title Insurance Documents Safe

Once your title insurance policy is issued, it’s crucial to keep the documents in a safe and easily accessible place. In the event that you need to file a claim, having quick access to your policy will save time and make the process smoother. Be sure to keep both the original and any copies of the policy in a secure place, such as a safe or a secure online storage system.

6. File a Claim When Necessary

If you encounter a problem with the title to your property, don’t hesitate to file a claim with your title insurance company. Title insurance can protect you from significant financial loss, but only if you file a claim when issues arise. Whether it’s a disputed lien, an ownership claim, or a fraud issue, your title insurance policy is in place to help you resolve it.

Contact your title company as soon as you become aware of a potential problem. The sooner you act, the sooner the company can assist you in navigating the claims process and resolving the issue.

7. Review Your Title Insurance Policy Periodically

While title insurance is a one-time premium, it’s important to review your policy periodically, especially if any significant changes occur with your property. Changes like remodeling, refinancing, or an addition to the title can all affect your coverage, and your policy should reflect those changes.

By regularly reviewing your title insurance, you’ll ensure that you’re adequately covered in the event of a title dispute or other issues.

Conclusion

Title insurance is an invaluable tool that protects your real estate investment in Denver, but it’s important to understand how to maximize its value. By choosing the right policy, understanding your coverage, keeping your policy updated, and working with a trusted title company, you can make the most of your title insurance and safeguard your property ownership.

Questions? Contact: Jerad Larkin at 303.630.9430 or Info@MileHighTitleGuy.com