3 things to consider when getting Title Insurance
If you’re looking into title insurance in Australia, you may be looking to take out cover: either for the property you’re about to purchase or for a property you already own. If you already own the property, you will need to speak to your Conveyancer about cover. So what will you need to think about when arranging this type of insurance?
You might like to consider these three simple factors when applying for title insurance cover.
How much cover will I need?
This is a common question when taking out insurance of any sort. The great news is that title insurance is easy to arrange with a very simple application process. The one-off premium is simply based on the property purchase price. If you purchase title insurance after settlement, the policy amount is based on the current value of your property.
All you need to do is find a reputable provider such as First Title Insurance, select your property type (more on that shortly) and provide some details from your contract of sale.
Title insurance provides cover for a range of property ownership risks. These typically include:
• Illegal building works, such as structures or renovations that may have been carried out by previous owners without prior approval.
• Incorrect boundaries, which might prevent you from accessing or using part of your land.
• Wrongly calculated council rates, land tax or strata levies, depending on your property type.
• Fraud or forgery, in the case that someone attempts to sell or take a fraudulent mortgage against your property.
While there are payment caps in place, these policies are structured to cover costs that you as the property owner might otherwise be liable for. You can click here to get a quote and view our policy wording documents, to gain a sense of what would be covered and how much you might be able to claim.
When do I need to purchase title insurance?
You can arrange title insurance either at the time of purchasing your property, or at any time afterwards - by contacting your Conveyancer. Your policy becomes active as soon as the policy is paid and you become the owner of the property. It then applies until you sell the property or transfer it to another owner.
There are no recurring premiums to pay, and no excess to pay if you do need to make a claim. It really is a set and forget policy!
What type of property am I looking to cover?
Different properties can have unique property risks. The problems that might arise with a vacant lot could be different to an apartment in a large metro estate, for example. This is exactly why our title insurance is divided into property types so you can have peace of mind that the important aspects have been considered. We offer title insurance for residential properties such as freestanding houses; title insurance for strata properties with common property including apartments, duplexes and townhouses; title insurance for vacant land, title insurance for commercial property for business purposes; and rural residential property. When requesting cover you can simply select the property type that applies, and if you’re not sure you can always reach our friendly team on 1300 362 178.
We hope these points have helped in your search for the right insurance. For further information on title insurance in Australia, be sure to read through What is Title Insurance – And Do You Need It? or to contact our team with any questions.
