Why Should I Have Owner’s Title Insurance When I Buy A Home?

Buying a home can be the wisest, most expensive, and most rewarding investment you’ll ever make. Title Insurance plays a major role in making certain that the title to your home is safe and secure.
Click here for 21 reasons why you should have title insurance.

I Thought The Bank Or Lending Institution Always Had The Title Insured?

It usually does. But a lender's policy only insures the lender's own interest in your property. You could lose your equity if you don’t have Owner’s Title Insurance.

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Couldn’t An Attorney Search The Title And Render An Opinion?

Yes, and a search by an attorney or expert title professional takes place before a policy is issued. Title insurance protects you further, if a defect in title should turn up later, you are protected against loss by your title insurance within the limits of the policy.

 

Just What Is A Title Defect?

It is one of a number of things that could jeopardize your interest. It could be an unsatisfied mortgage, lien, judgment, or other recorded claim against the property. It could arise through easements, use restrictions, or other existing covenants. Or it could be a hidden risk. To name a few of these: fraud or forgery in the previous documents, improperly executed deeds, the marital status of previous owners, deeds executed under expired powers of attorney… The list could go on and on. A look at the Court Records would reveal many instances of these and hundreds of other ways in which parties you have never heard of could claim an interest in your home.

 

You Mean An Owner’s Title Insurance Policy Insures These Title Defects?

No. Title insurance eliminates the risk of loss to you through claims against the title as insured in your policy. The underwriter assumes all legal expenses involved in adjudicating claims and protects you against any loss whatsoever arising from claims attacking your title, within policy limits, even though they may occur through errors made in Public Records.

 

How Serious Would A Claim Against My Home Be To Me Personally, Without Owner’s Title Insurance?

It could be very serious. It would mean you would have to withstand all expenses involved with defense of your rights, and could even result in loss of your equity if your defense proved unsuccessful.

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Is Owner’s Title Insurance As Important To Me As Fire Or Property Damage Protection?

YES, losses from title deficiencies can be as great as, or greater than, fire or other damages.

 

If Title Insurance Is So Important and Covers So Much, Isn’t It Expensive?

No. Owner’s Title Insurance is one of the most inexpensive forms of insurance. Rates vary from region to region based on the amount of service required. The premium is surprisingly low in relation to the cost of your home – one of the most important purchases you will ever make.

 

Do I Pay Only One Premium?

Yes, this one modest premium insures your home as long as you or your heirs have an interest in it. It’s best to have your Owner’s Policy issued at the time you take title to your property. This eliminates the need to pay for having the title searched for a second time.

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