When it comes to commercial title insurance, no two policies are ever the same. Because of this, it’s wise to sit down with a title services company like Commercial Partners to ensure you get the right policy for your needs. In today’s blog, we take a closer look at why no two title insurance policies are exactly the same.
Why Each Title Insurance Policy Is Unique
Commercial title insurance varies from other types of insurance in a few key ways. For starters, there are ALTA endorsements. ALTA endorsements are extras that can be added to your policy based on the specific needs of your property.
These ALTA endorsements can be added to a title insurance policy, and they can cover different property types, structures on the land, environmental concerns, zoning regulations, entryways, land surveys and more. Depending on your property, you may benefit from adding specific ALTA endorsements. It allows you to completely customize your policy based on your needs and your wishes. Unnecessary extras can be avoided, but potential hazards unique to your property can be added so that your financial risk can be minimized.
Your policy portfolio will also depend on what type of policy you’re buying, as there are two common forms of title insurance. There is the lender’s title insurance, which you will likely be required to purchase if you are securing a loan from a financial institution as part of the purchase, and there’s owner’s title insurance, which protects your interests in the event of a title claim. Owner’s title insurance will be optional, but we highly recommend that you secure this type of policy as well. Without it, you’re leaving yourself exposed to massive risk in the event of a title claim. If insurance requires that you acquire a policy to protect their interest, you should understand the value in protecting your interests in the event of a claim.
A final way that a title insurance policy will be unique to you is in how it’s structured from the financial side. Unlike an automobile or a health insurance policy that requires regular payments to maintain coverage, title insurance is secured with a one-time lump sum purchase. This one-time fee provides you with coverage for as long as you own the property, potentially giving you peace of mind for decades or longer.
At Commercial Partners, we can tailor a customized title insurance policy to your needs. Unsure of what you need? Let us review your property and determine where your biggest liabilities are so that you aren’t left exposed to major risk. To learn more about your options when it comes to a title insurance policy, connect with the team at Commercial Partners today at (612) 337-2470.