title insurance validity period

title insurance validity period

My interest	4/11/2008 7:18:07 AM
I have a policy with me listed as the insured. The covered amount is the original purchase price with a notion of the mortgage amount. Will the policy still be valid after I pay off my mortgage but still own the same house? Somehow I got an impression that i may need to buy an re-issue policy. But I feel it a bit unreasonable (because there is no additional title risk being introduced) and I cannot find any clear statement in the policy document. (but I must admit that I don't fully understand those legal jargons.)



A Michigan Attorney	4/12/2008 7:33:15 AM
On Apr 11, 7:18 am, My interest <myinter...@gmail.com> wrote: I have a policy with me listed as the insured. The covered amount is the original purchase price with a notion of the mortgage amount. Will the policy still be valid after I pay off my mortgage but still own the same house? Somehow I got an impression that i may need to buy an re-issue policy. But I feel it a bit unreasonable (because there is no additional title risk being introduced) and I cannot find any clear statement in the policy document. (but I must admit that I don't fully understand those legal jargons.) You don't need to buy another policy when you pay off the mortgage. The validity of the policy has nothing to do with the mortgage. Title insurance protects you from lawsuits and judgments by people who claim to be the true owners of the property you bought. The "notation" of the mortgage amount is probably to indicate that there is another covered party under the insurance (i.e., your mortgagee) and the maximum amount of its interest in the policy.



Stuart Bronstein	4/12/2008 7:33:18 AM
My interest <myinterest@gmail.com> wrote: I have a policy with me listed as the insured. The covered amount is the original purchase price with a notion of the mortgage amount. Will the policy still be valid after I pay off my mortgage but still own the same house? Normally a title insurance policy is taken out primarily to protect the lender. But since you pay for it, it should protect you, too. As far as I'm aware, a title insurance policy doesn't expire at any time while you are the owner of the property. However title insurance has so many exceptions and exemptions that it really won't protect you against much. If you've paid off your mortgage, you've probably been in the property for quite some times. If you've been there longer than the time period required to obtain prescriptive rights under your state law, you're probably pretty safe. Stu



gordonb.u48mg@burditt.org (Gordon Burditt)	4/12/2008 7:33:21 AM
I have a policy with me listed as the insured. The covered amount is the original purchase price with a notion of the mortgage amount. Will the policy still be valid after I pay off my mortgage but still own the same house? There are two types of title insurance policies: one that protects the bank and one that protects the owner AND the bank. The first type is worthless after you pay off the mortgage (and it doesn't protect YOU even before that). Somehow I got an impression that i may need to buy an re-issue policy. But I feel it a bit unreasonable (because there is no additional title risk being introduced) and I cannot find any clear statement in the policy document. (but I must admit that I don't fully understand those legal jargons.) The second type is more expensive but you shouldn't have to pay again if you pay off the mortgage. Which type do you have?

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