What Does a Title Insurance Policy Cover in Denver?

Introduction

When purchasing a home in Denver, one of the most important steps in the process is securing title insurance. A title insurance policy protects you from financial loss due to defects in the title of the property you are purchasing. Understanding what a title insurance policy covers is crucial for every homebuyer. In this blog post, we will explore the various protections offered by title insurance policies in Denver.

1. Protection Against Title Defects

Title insurance safeguards you against potential defects in the title that could affect your ownership rights. Common title defects may include:

• Unpaid Mortgages: If a previous owner failed to pay off their mortgage, the lender could place a lien on the property.

• Judgments Against Previous Owners: If the prior owner had outstanding debts or legal judgments, creditors might have claims against the property.

• Forgery or Fraud: Title insurance protects you if someone forges a signature on a property deed, claiming ownership or transferring the title fraudulently.

• Errors in Public Records: Mistakes made in public records can create issues regarding the true ownership of the property.

2. Coverage for Liens

One of the key benefits of title insurance is coverage against liens on the property. If any liens are discovered after the purchase that were not disclosed during the closing process, your title insurance policy will cover the costs associated with resolving these claims. This includes:

• Mechanic's Liens: Claims from contractors or suppliers who performed work on the property and were not paid.

• Tax Liens: Unpaid property taxes that could lead to foreclosure.

3. Defense Against Title Claims

In addition to covering financial losses, title insurance also provides legal defense against any claims made against your ownership of the property. If someone challenges your ownership rights based on a defect in the title, your title insurance company will defend you in court at no additional cost to you.

4. Coverage for Unrecorded Claims

Title insurance policies often protect against unrecorded claims that may arise after the sale. These claims could involve issues such as:

• Heirship Claims: If a deceased former owner’s heirs come forward, claiming rights to the property.

• Boundary Disputes: Disputes with neighbors regarding property lines or easements.

5. Enhanced Coverage Options

In Denver, many title insurance companies offer enhanced coverage options that go beyond the basic policy. These options may include:

• Increased Coverage Amounts: Additional protection for specific issues that may arise, such as zoning issues or violations.

• Protection Against Loss of Value: Coverage for a decrease in property value due to a covered title defect.

Conclusion

Understanding what a title insurance policy covers is essential for protecting your investment in a Denver home. From guarding against title defects and liens to providing legal defense against claims, title insurance plays a vital role in ensuring peace of mind for homeowners.

If you’re in the process of buying a home in Denver, consider investing in a comprehensive title insurance policy to safeguard your property and your finances.

Questions? Contact:

For more information about title insurance coverage and to discuss your specific needs, contact Jerad Larkin at 303.630.9430 or email Info@MileHighTitleGuy.com. We're here to help you navigate the title insurance process with confidence.