Why do I need title insurance?
To protect your property rights.
A home is probably the single largest investment you'll make in your life. You insure everything else that's valuable to you - your life, car, personal property, health, pets, jewelry, etc, So why not your largest investment? For a one-time fee, owner's title insurance protects your property rights for as long as you or your heirs own the home.
Owner's title insurance is a one-time fee that's very low relative to the value it provides. It typically costs around 0.5% of a home's purchase price.
As long as you or your heirs own your home, owner's title insurance protects your property rights.
Home insurance and warranties protect only the inside of your home. Getting owner's title insurance ensures your family's property rights stay protected.
Every year, more than 80% of America's homebuyers choose to get owner's title insurance.
If you're buying a home, owner's title insurance lets you rest assured with the knowledge that you won't have to take on certain existing debts or legal problems once you've closed on your new home.
A title insurance policy guarantees that title to the property is free of "hidden" liens, hazards or human errors. When title insurance is purchased and experienced title examiner performs a comprehensive search of the public land records to determine if any liens or other encumbrances are attached. Although this search is intended to report all material title objections, there is always a chance that the substantial issues may go undetected.
Examples of undetected issues:
To protect against risk, a lender will require assurance that the title to the property is clear and this is done through the issuance of a loan policy. This policy covers the lender only.
An owner's title policy protects you against future losses arising out of events that may have happened in the past. Your policy serves as a written guarantee that your underwriter will undertake, at it's own expense, the defense of your title in all legal actions or proceedings alleging title to be other than as insured. The owner's title insurance policy is a one time premium paid during the closing process.
Title insurance guarantees that you have legal and " marketable" title to the property you are financing. Title insurance may be issued for both the buyer and the lender, if there is one. The lender's policy will protect the lender for any defects in the title up to the amount of the loan. The buyer's or owner's policy will protect the new buyer against any flaws in the title. The policy will be good as long as the buyer owns the property. It covers events or circumstances that happened in the past, before the buyer took title to the property.
7 Reasons why every homebuyer needs owner's title insurance
If you're buying a home, there are many hidden issues that may pop up after purchasing it. Getting an owner's title insurance policy protects you from legal title discrepancies. It could happen to you. Here are just some of the many situations that you'll be protected from if you have owner's title insurance.
Undetected title claims, such as:
Unexpected title claims, such as: