What Is a Market Value Rider in NYC Real Estate?

Nick at Hauseit (https://www.hauseit.com) reveals what a market value rider is and why you should consider paying for it when buying title insurance as part of a home purchase in NYC. Save money when buying real estate in NYC with Hauseit: https://www.hauseit.com/buyer-closing-credit/

Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014. Learn how it works: https://www.hauseit.com/how-it-works/
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To start, let’s do a quick refresher on title insurance. A market value rider is related to title insurance. Let’ say you’re buying a house in NYC. You need some sort of protection against future claims somebody might make against you and your property based on prior ownership of your apartment or your home. This is where title insurance comes into play.

At closing one of your largest closing costs is title insurance. It is a one-time purchase for a policy which covers the value of your purchase during the lifetime of ownership against claims
made by people who had prior ownership of your asset who come forward later
down the line after you've already purchased. If at some point after you close, somebody claims that they own your apartment, and it turns out that they actually do, well your title insurance policy will cover the value of purchase.

This is where the concept of a market value rider comes into play. What happens if this claim against the title of your apartment happens 25 years from now? Surely the value of your apartment or townhouse has gone up significantly since then, but a traditional title insurance policy only covers your purchase price. It does not protect you in terms of the appreciation since you purchased your property.

When you're buying title insurance, they will ask you a question: “are you interested in buying a market value rider?” The market value rider increases the amount of insurance coverage to reflect appreciation. Over time, the value of your apartment goes up and so does the coverage based on your title insurance policy, only if you purchase the market value rider.
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Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014. Learn how it works: https://www.hauseit.com/how-it-works/

Hauseit LLC, Licensed Real Estate Broker
Tel: +1 (888) 494-8258
Email: [email protected]
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