Angie Tang – Senior Vice President of Sales for First American Title, offers insight on how title insurance companies work and what they cover.
Do you think title insurance companies insure the number of bedrooms and bathrooms, lot size, and square footage of the house? The answer is no. What we actually insure is not the lot size, but actually, we insure on the track map and the legal description of a property.
Property profiles are deemed reliable but not guaranteed, and that’s where it ties in with the number of bedrooms, bathrooms, lot size, and square footage of a house. When looking for title insurance companies, another quick tip is to look for companies that underwrite their own policies. And make sure that they actually have a lot of stability and security in their claims reserve. What that means to you is that it keeps you out from spending more money on litigation and time.