Understanding Title Insurance: Why It’s a Must-Have for Homebuyers
Buying a home is a significant investment, so naturally you want to ensure your rights as the owner are protected. That’s where title insurance comes in; it’s a must-have for every homebuyer because it safeguards your investment while providing peace of mind.
Title insurance is a unique form of insurance coverage that protects your legal ownership of a property, rather than the physical residence itself. When purchasing a home, you receive a deed that transfers the title from the seller to you. Title insurance ensures there are no hidden issues, disputes or claims that could threaten your right to ownership of your property.
Wondering what could cause your ownership to be jeopardized? Once the contract is closed, isn’t the house legally yours? And shouldn’t the title search have unearthed any problems? The answer is that despite property inspections and due diligence, there can be remaining title issues that will rear their ugly head months, or even years, down the road. These can include errors in public records (which require legal intervention to correct), prior liens or judgments against the property (which can be costly to pay off to remove) or even disputes from heirs claiming ownership (which could become a lengthy and costly legal battle). Title insurance shields you from title errors that could cost you a fortune…or even your legal ownership of the property!
Because of this, title insurance is truly an investment in your peace of mind. You can confidently invest in your new home without worrying about potential legal disputes or financial burdens arising from title related issues. Your home is one of the most significant investments you will make in your lifetime, so title insurance is a must-have to protect your investment.
In addition to the security it provides you, title insurance is likely a requirement if you are financing your purchase through a mortgage. Your lender will require a lender’s title insurance policy to protect their financial interests. Lender’s policies ensure the mortgage is secured by a valid and enforceable lien on the property. As a homebuyer, you should also consider purchasing an owner’s policy to protect your side of the investment too. An owner’s policy covers the homeowner (and their heirs) for as long as they have ownership of the property.
Unlike other types of insurance, title insurance premiums are typically paid as a one-time fee during closing. The cost depends on the purchase price of the property and can vary due to location, but the advantage of title insurance is it will not increase your monthly mortgage payment amount.
Title insurance is a must-have for homebuyers, so if you’re in the market for peace of mind, call Clear Title today.
Pensacola: (850) 361-4029
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Pine Forest: (850) 202-8518