What is Title Insurance?

Hi Buddy,

Being associated with an insurance company, I can assist you with your query about what is title insurance? Recently, one of my friends purchased an apartment. However, he was confused about various property-related terminologies, to which he suddenly got exposed. I would like to share my thoughts or insights about the same.

The ownership of property changes every time it is sold and bought. The process of buying and selling land or property can have several problems such as ongoing legal action that isn't mentioned or various fraudulence. Knowing this information at the time of purchasing is difficult. This is when title insurance is useful.

A title insurance policy is a type of indemnity insurance that protects property owners and buyers from financial losses caused by a flaw in the property's title or ownership. It aids in the defence of property owners and buyers against claims of prior ownership and fraudulent transactions. It aids in the protection of property purchasers against previous claims as well as potential future damages.

The title refers to the person or people who have legal ownership and usage of a piece of land or property.

The insurance provides coverage for the following:

• Forgery and impersonation 

• Costs of litigation

• If a title dispute emerges during a transaction, the insurance company will reimburse the legal costs

• If an out-of-court settlement is required, expenses are met by paying compensation to the parties involved

• Covers fraud and concerns that were not found prior to the policy's start date

• It is aimed at property developers, home finance businesses, and investors

• It is a policy that will last between 5 and 15 years

The steps for filing a claim are as follows,

• Within 45 days of the occurrence of the event for which you need to file a claim, notify the insurance company

• Within 90 days of receiving notification of the claim, the insured must submit the claim form and supporting papers

• In the event of a third-party claim, the insurance provider will compensate property buyers for the amount of their losses

The following are some of the documentation that the insured must submit in order to receive prompt claim settlement:

• Completed and signed claim form

• Title document or title document registration

• Property records

• KYC paperwork

• Information on legal fees

Only by mutual agreement and payment in advance of the complete premium may title insurance be renewed. If the property buyer does not renew his policy before the end of the policy period, it will automatically terminate

In India, HDFC Ergo is the sole insurance firm that offers title insurance.

• It safeguards the interests of owners, lenders, and investors from financial losses

• Reduce the risk factor in real estate transactions by protecting property buyers and from loss due to land title flaws identified after the purchase

I hereby conclude my answer on what is title insurance. I hope this helps:)

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