What is title insurance?

Title insurance is a form of insurance designed to protect homeowners in Alaska from the potential risks associated with purchasing property. Title insurance helps to protect the buyer from any kind of financial loss due to unknown liens, encumbrances, claims, or defects in the title. Title insurance guards against someone else taking legal action against the homeowner’s title to the property, such as if another party has an interest in a property and the homeowner was unaware of it. When a homeowner purchases property in Alaska, they will typically be required to purchase title insurance. This is usually done to protect the lender, but the homeowner is also entitled to the protection it provides. A title policy is sold as part of the closing transaction and is usually based on the purchase price of the property. Title insurance costs vary, but typically run between $2.50 and $3.50 per thousand dollars of the purchase price. In some cases, title insurance may also protect the homeowner against title defects that arise after closing. Title defects can be anything from forgery to incorrect taxation. Title insurance can help protect the homeowner in the case of a dispute and can spare them from the hassle and expense of litigation. In Alaska, title insurance is a key part of the purchasing process, protecting homeowners from the risks associated with a property purchase.

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