What is title insurance?
Title insurance: the best home protection money can buy.
A home is usually the largest single investment any of us will ever make. When you purchase a home, you will purchase several types of insurance coverage to protect your home and personal property.
Homeowner's insurance protects against loss from fire, theft, or wind damage. Flood insurance protects against water. And a unique coverage known as title insurance protects against hidden title defects that may threaten your investment in your home.
Title insurance is not as well understood as other types of home insurance, but it is just as important. You see, when purchasing a home, instead of purchasing the actual building or land, you are really purchasing the title to the property - the right to occupy and use the space. Most all homes, and the property they occupy, have gone through several ownership changes. There may be a weak or broken link at any point in that chain of ownership that could cause significant financial loss on your part. For example, an unknown heir of a previous owner may appear claiming ownership of the property, or there may be unpaid real estate taxes. There could also be easements that allow construction of a road or utility line, or even a forged signature on the deed, which would mean no transfer of ownership to you.
An Owner’s Title Policy will protect you from these and other hidden hazards that can emerge after closing, preventing any unpleasant and costly surprises. All for a one-time charge at closing.
Coverage lasts as long as you, the policyholder - or your heirs - has an interest in the insured property. The additional cost above the cost of the lender policy is relatively small… especially compared to the potentially devastating losses as a result of a title defect should you choose not to purchase an Owner’s Title Policy.
Your home is your most important investment. Before you go to closing, ask about your title insurance protection, and be sure to protect your home with an owner's title insurance policy.
