How long does title insurance cover you for? (property, lien, closing)

[LifeIsGood01]

Is it as long as you own the home?

Until it's paid for thru the mortgage?

I saw a review of one title company saying the bought the home in 2000, everything was fine, but when they tried to sell it there were open permits from 1992 that they had to pay a few thousand dollars to clear it up because the title company refused to pay.

Was this just a case of the title company saying they would not pay and the person just accepting it without disputing or insisting they honor the policy?

[FalconheadWest]

Originally Posted by so954

Was this just a case of the title company saying they would not pay and the person just accepting it without disputing or insisting they honor the policy?

More than likely, yes. Title insurance is on the property until you sell. It protects you against things that happened before you bought the property, so it doesn't protect against anything from the closing date through the present. It's about past, and a 1992 lien that they missed is about the past.

Though, I'm not sure about open permits being like a "lien" on the property.

[jackmichigan]

Insurance companies make money by not paying claims.

[399083453]

Originally Posted by so954

Was this just a case of the title company saying they would not pay and the person just accepting it without disputing or insisting they honor the policy?

Title insurance is needed so you don't loose ownership of the property. If you read the policy, you will likely see it says nothing about un-permitted work.

Now....if you bought un-permitted work insurance or whatever, I'm sure they would pay.