INSURANCE --- A WAY TO KEEP SAFE.
The term "title insurance" is a combination of two words: title and insurance. To understand it better, first we understand what is meant by "title". The term "title" is used to refer for a person who has got a legal right to use, own or sell a property. The title contains all the brass tacks related to previous ownerships, transfers, mortgages, easements, etc.
Why it is important?
A problem in the title could result in a fail transaction - your ownership could be questioned. A problem in the title can arise due to various reasons, such as, lien, unpaid taxes, earlier forged transactions, etc.
It is vital to have the insurance policy so that the owner would remain safe from any kind of the title related problems. Thus, every mortgage lender requires a title insurance policy to avoid any future disputes on the title of a property.
How it works?
It provides a protection against financial losses in the title of a property. It will fight for the insurance holder in case of any lawsuit, and would reimburse him/her in case of financial losses.
Before issuing the insurance policy, every company does in-depth research to detect, prevent and eliminate any sort of a problem in the title of a property.
Insurance Premiums.
It is important to understand that title insurance for a lender is different from the insurance of a buyer. Generally, the buyer is responsible for the one-time premiums of both the policies, but in some states, the seller is responsible for the one-time premiums of both the policies. It is suggested that buyers must discuss this issue with their real estate agents.
Further, it requires only one-time premium and covers the tile as long as the policy holder owns the property.
How it is Different from Other Types of Insurances?
Title insurance is different from other general forms of insurances as it covers the losses that arises due to the events occurred prior (indefinite period) to the date of the issuance of the policy. On the contrary, in a life insurance or property insurance, the upcoming losses from the date of the issuance of the policy are covered for a definite period.
Title insurance is mandatory for every lending organization. It is a highly recommended insurance for every buyer. Although, it looks as an upfront expense, but in case of any dispute in the title of a property, it works as a savior.
General insurance refers to other forms of coverage other than life insurance. Examples include insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. It also includes professional indemnity insurance for professionals. By paying the premium under this policy, the insured can get reimbursement for any loss that may occur.
Not all general insurance is necessary under law. The following are the common types:
1. Home Insurance coverage provides protection to home and property from loss caused by theft, fire, earthquake, flood, or other disaster.
2. Renters Insurance coverage provides protection to tenants for loss caused to property owned by tenants and stored in rented property.
3. Medical Insurance is, basically, a promise by an insurance company to provide or pay for medical expenses in exchange for payment of premiums.
4. Auto Insurance provides protection against claim for bodily injury or damage caused by the operation of a vehicle. Operating a vehicle without auto insurance is a violation of the law.
5. Travel Insurance is insurance against contingencies during travel.
6. Professional indemnity insurance provides protection to professionals from claims of professional negligence. Some states require professional indemnity insurance for certain professions.
Most general insurance policies offer standard coverage. Customized coverage may also be available with an insurance company. Some form of coverage is necessary for every family. It is a must for all in today's world.
And, for these policy types, you'd save a bundle if you do thorough comparison shopping. Get and compare quotes from a wide range of insurance companies. This simple and free exercise will save you hundreds, if not thousands, in premium dollars.
Payment Insurance Explained
What will it do?
Redundancy or incapacity that prevents us from working can strike any one of us at any time. And one of your first worries will be - how will I pay my bills? Payment insurance - or payment protection insurance to give it its full title - can be the solution to nip any worries in the bud before it happens.
It will provide you with a replacement income with which to pay the household bills, or specific cover for particular commitments like mortgage repayments or other borrowing, in the event of your being unable to work because of an accident, sickness or due to involuntary redundancy.
These will be in the form of monthly tax free payments.
So, I need to have a mortgage, a loan or credit card to qualify for payment insurance?
Not necessarily. Provided you have an income from regular employment, payment insurance can provide a replacement income in the event that you fall ill and are unable to work for a significant period of time - no mortgage or other borrowing commitment is required.
How long would I need to be off sick or unemployed?
Different insurers have different qualifying periods before entertaining claims under such policies. Probably the most typical period is 30 days - once your incapacity to work or unemployment has lasted longer than this period, the insured benefits become payable - although some policies can stipulate a qualifying period of up to 90 days.
A further difference between policies is that some treat this qualifying period as a form of policy excess in so far as any loss of earnings during that time have to be borne by the policy holder, while others will backdate the benefits payments to the first day of incapacity once the qualifying period has been exceeded.
What if I succumb to a long-term illness?
Payment insurance policies are essentially designed to provide relatively short-term financial relief and support during a recoverable illness or period of unemployment likely to keep the policy holder off work for between one and twelve months. Therefore, the insured benefits are paid every month until the policy holder is well enough to resume work / find alternative employment or for up to a maximum period of 12 months. Although some policies will offer the option of extending this maximum period to up to 24 months, if the prospective policy holder's principal concern is to buy cover against the risk of a long-term, critical or serious injury, then he or she is probably better advised to seek specialist advice regarding critical illness or permanent health insurance.
What level of protection insurance should I buy?
This is, of course, largely a matter of personal choice, taken in the light of the monthly premiums that can be afforded. If the primary concern is to ensure the continued repayment of a mortgage or other borrowing during times of incapacity for working, then the decision is relatively straight forward and determined by the level of monthly repayments that need to be made.
If a general replacement income is required, however, then this will rest more on the policy holder's best estimate of the monthly income on which he or she can get by. Although the actual amounts will vary from insurer to insurer a typical maximum level of payment insurance cover will be 50% of normally earned income, or £1,500 a month, whichever is the lesser.
Finding Insurance Companies For Competitive Quotes.
Now you can go to insurance companies Northern Ireland for competitive quotes for all types of insurance products. Previously, finding cheap insurance products in Northern Ireland has always been a bit of a let down. Car insurance premiums for instance for those living in Northern Ireland have been anything but cheap due to the fact that cars were stolen and used as barricades. Other types of insurance also suffered and the premiums were anything but competitive.
You can now find insurance companies Northern Ireland online that offer competitive quotes which could help you to make savings on the cost of your insurance. However you can also do many things to help yourself keep down the cost of your insurance. These could of course differ depending on the type of insurance you are looking for. For instance if looking for car insurance you would be able to choose from the cheaper third party fire and theft to a fully comprehensive policy which would be the dearest option.
Insurance companies Northern Ireland will allow you to payout more in excess than what they ask and all will put a limit on the minimum amount of excess you can pay. By choosing to pay a higher amount you can save on the premiums for the insurance but you would have to weigh up the fact that you do have to find the excess as a lump sum out of your own pocket if you should need to make a claim. You could also lose out if you were to have to make more than one claim in any one year. Excess will usually be included in car and home insurance so you could make savings this way on either of these forms of insurance.
Whether you are looking for home or car insurance the more security precautions that are in place the cheaper the insurance premiums would be. If you want car insurance you could install security features such as a car alarm, an immobiliser or a tracking device. Any of these would help you to make savings on the premiums for the cover. If you want to make savings on home insurance you could install an alarm system, door and window locks and provide secure fencing around your home.
If looking to take out life insurance then you can tailor the insurance to suit your needs. Term insurance would allow you to insure your life for so much and for a certain length of time. Providing you pay the premiums for the insurance the policy would payout if you passed away during the term of the policy. However should you outlive the policy it would simply expire. However this is one of the cheapest ways to insure your life.
