Financial literacy month – Test your title insurance knowledge

Nov 5th, 2013 | By FCT

In Michael’s last blog he spoke about the need to create informed consumers knowledgeable about title insurance. So in the spirit of being an “informed consumers” its time to test your knowledge of title insurance basics. Check your answers below.

1. A title insurance policy deals only with:

a) the value of the property.
b) matters which affect the title of the property.
c) matters that deal with renovations to a property.

2. Title insurance policies require:

a) an annual premium.
b) a monthly premium.
c) one payment at closing time.

3. When does the purchaser pay the premiums of title insurance?

a) when the lawyer asks for it.
b) once a year on the closing date.
c) once, upon closing.
d) no later than 1 month after closing.

4. True or False? – There is no deductible on a title insurance policy claim.

5. Can title insurance policies be transferred?

a) no, never.
b) yes, if the insurance allows it to happen.
c) yes, when a homeowner writes to the insurance company indicating his or her wishes.
d) yes, in the event of a homeowner’s death and according to the provisions in his or her will.

6. Which one of these potential problems does title insurance protect against?

a) any fraud or forgery in the chain of title.
b) loud neighbours.
c) items that were listed in the offer but then taken away.
d) bad wiring.

7. What will trigger a title insurance claim?

a) The deck on your new home has become unstable and wobbly and in need of repair.
b) You receive a work order from the municipality to remove the deck that you built without a permit.
c) You receive a municipal work order to remove the deck that the previous owners built without a permit.

Answers
1) b,  2) c,  3) c,  4) True,  5) d,  6) a,  7) c)

Score
1-3 correct – Please ask questions on this Blog
4-6 correct – Thanks for reading the FCT Blog!
All correct- Hey do you work here?

2 Responses to “Financial literacy month – Test your title insurance knowledge”

  1. Barry Boyd says:

    Excellent “Title Insurance Tutorial” for Canadians as we enter “Financial Literacy Month”. Who Knew?

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