ANNOUNCER: I’m with Julien Luckasavitch from Cohen Highley. Julien, what is title insurance?
JULIEN: It’s a policy of insurance that protects homeowners and lenders from financial loss caused by defects entitled to real estate. It does not cover against physical defects such as poor construction quality. Instead, it insures a buyer for any issues a new survey might disclose. A one-time payment, usually when a property is purchased covers the owner as long as they own that property. Title insurance compensates owners and lenders for title related defects that were not discoverable on closing or were insured over, such as open building permits, zoning violations, liens or encroachments.
ANNOUNCER: Does it cover risks that are created after closing?
JULIEN: Title insurance does not cover defects that are created after purchase such as construction without a permit or survey.
