What is title insurance? It’s a great question and there’s a good answer for it. Title insurance protects homeowners (and mortgage lenders) against any property loss or damage they might experience because of liens, encumbrances or defects in the title to a property. Put another way, homeowner’s insurance protects only the structure and belongings of your home, but a title insurance policy protects you from unexpected claims against your property ownership. And that’s only the beginning. Here are three huge reasons why you and your family should seriously consider title insurance:
- Eternal Protection – For only a one-time fee, a title insurance policy protects your property rights for as long as you or your heirs own your home. A small price to pay for the tremendous value it provides.
- Covers Unexpected Title Claims – If you are buying a home, there are many hidden issues that may appear only after you purchase your home. Getting an owner’s title insurance policy is the best way to protect yourself from unforeseen legal and financial title discrepancies.
Unexpected title claims include:
• Outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes
• Pending legal action against the property that could affect you
• An unknown heir of a previous owner who is claiming ownership of the property
• Lost or forged deed
• Transfers by incapable people
• Incorrectly indexing in the land evidence records
• No right of access to your property
3. Peace of Mind– If you’re buying a home, a title insurance policy lets you rest assured, knowing that you’re protected from inheriting any existing debts or legal problems, once you’ve closed on your new home
It’s a No Brainer. Each year, more than 80% of America’s homebuyers choose to get an owner’s title insurance policy. A home is probably the single largest investment you will make in your life. You insure everything else that’s valuable to you, including your life, your car, health, pets, etc., so why not protect what is arguably your largest investment?