Phone: 239.540.7007
Title Insurance
Not all home insurance policies are created equal. Learn more about them in this post by Stewart: Schutt Law in Fort Myers and ensure you’re protecting your assets in the event of an unexpected situation. 

Why Having Home Insurance Matters

Home insurance is vital because it provides financial protection in the event of damage or destruction to a home. It can also protect homeowners from liability if someone is injured on the property. That’s why home insurance is an essential consideration for homeowners. It can provide financial protection, liability coverage, and peace of mind in the event of damage or destruction to the home.

Protecting your assets is essential when purchasing a home. That’s why Schutt Law in Fort Myers offers excellent title insurance to protect your investment if any issues with your title should arise. Call (239) 540-7007 for advice on their various title services.

Basic Form Homeowners Insurance

Basic Form Homeowners Insurance is the most basic type of homeowners insurance. It covers damage to your home and personal property caused by common risks such as fire, theft, and weather-related events. It also provides liability coverage in case someone is injured on your property. This type of coverage is typically broken down into property coverage and liability coverage. Basic form homeowners insurance policies typically limit coverage for certain property types, such as jewelry or valuable art. If you have high-value items, you may need to purchase additional coverage or a rider to ensure they are fully protected.

Broad Form Homeowners Insurance

Broad Form Homeowners Insurance expands the basic form policy, offering more protection for a slightly higher premium. It includes additional coverages such as loss of use, medical payments, and personal liability.
  • Loss of use coverage
  • Medical payments coverage
  • Personal liability coverage
These policies typically have higher limits on the amount of coverage for certain types of property, such as jewelry or valuable art. It also covers more perils than Basic Form Homeowners insurance, like falling objects, riots, and civil commotion.

Whether you’re a new homeowner or a seasoned expert in homeownership, having a professional title agent by your side is one of the best ways of protecting your assets. Call Schutt Law in Fort Myers at (239) 540-7007 today for information on their excellent services.

Special Form Homeowners Insurance

Special form homeowners insurance is the most comprehensive form of home insurance. This type of coverage protects against all risks except those expressly excluded in the policy. This includes damage caused by natural disasters like earthquakes, floods, and landslides. This type of coverage is also known as an "all-risk" policy, as it provides broad coverage for almost any type of loss, except for those expressly excluded in the policy, such as wear and tear, nuclear hazards, war, or government action. Special form homeowners insurance policies include coverage for additional living expenses, personal liability, and medical payments.

Home Warranty Insurance

Home warranty insurance is a type of insurance that helps to cover the cost of repairs or replacement of specific systems and appliances in a home. This can include things like:
  • HVAC systems
  • Plumbing
  • Electrical systems
  • Major appliances like refrigerators, ovens, and washing machines.
Home warranty insurance is typically purchased by the homeowner and is separate from home insurance. It's important to note that home warranty insurance typically doesn't cover damage caused by natural disasters or general wear and tear. Home warranty insurance can be beneficial for homeowners as it can help to protect against the high cost of unexpected repairs or replacements. It can also provide peace of mind, knowing that if something goes wrong with a covered system or appliance, the homeowner will not have to bear the full cost of the repair or replacement.

Guaranteed or Extended Replacement Cost Coverage

This type of coverage will pay to rebuild your home, even if the cost exceeds the amount of your policy limit. This is an essential coverage to have if you live in an area with a high risk of natural disasters, as it ensures that you will be able to rebuild your home even if the cost is higher than your policy limit. When shopping for home insurance, it's important to consider the available types of coverage and your specific needs and budget. Be sure to compare policies from different insurance companies to ensure you get the best coverage at the most affordable price.

If you’re wondering about title insurance, call Schutt Law in Fort Myers at (239) 540-7007 and let them walk you through the advantages of having this coverage as a homeowner.

Owning real estate is one of the most precious values of freedom in this country. You want the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions against your home.

Title insurance is issued after a careful examination of the public records. But even the most thorough search cannot absolutely assure that no title faults are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. Title insurance eliminates any risks and losses caused by faults in title from an event that occurred before you owned the property.

Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life, or health cover you against losses that may occur in the future. Title insurance does not protect against any future faults, but does protect you from risks or undiscovered interests. Another difference is that you pay a one-time premium for a policy that remains effective until the property is sold to a new owner - even if that doesn't occur for decades.

What is a Lender's Policy?

A lender's policy, also known as a loan policy or a mortgage policy, protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist, but may not be known at the time of the sale.

This policy only protects the lender's interest. It does not protect the purchaser. That is why a real estate purchaser needs an owner's policy.

What is an owner's policy?

An owner's policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.

What does an owner's policy provide?

- Protection from financial loss due to demands that may be charged against the title to your home, up to the cost of the title policy.
- Payment of legal costs if the title insurer has to defend your title against a covered claim.
- Payment of successful claims against the title to your home covered by the policy, up to the cost of the policy.

Why the seller needs to provide title insurance?

Any purchaser will need evidence that his investment in your property is free of title defects. The title insurance policy that you provide the purchaser is a guarantee that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership. It will reassure your purchaser that he or she is protected from any risks or losses and could help you close your deal.

Why the buyer needs title insurance?

Without title insurance, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title. As a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. If this should occur, your title policy insures that you will be defended at no cost against all covered claims up to the amount of the policy.

How much does title insurance cost?

The insurance commission approves and controls the premiums for title insurance policies. The premiums are paid only once and the cost depends upon the purchase price of the property and the policy amount must be equal to the purchase price.

What does title insurance protect from?

  • Fraud
  • Adverse possession
  • Rights of divorced parties
  • Deeds by minors
  • Undisclosed Heirs
  • Errors in tax records
  • False affidavits of death or heirship
  • Probate matters
  • Deeds and wills by persons of unsound mind
  • Conveyances by undisclosed divorced spouses
  • Forfeitures of real property due to criminal acts
  • Deeds by persons falsely representing their marital status
  • Documents executed by a revoked or expired Power of Attorney
  • Defective acknowledgements due to improper or expired notarization
  • Mistakes and omissions resulting in improper abstracting
  • Forged deeds, mortgages, wills, releases and other documents
  • False impersonation of the true land owner