What Is a Title Insurance Policy?
If a natural disaster were to happen to your home, you would have home insurance to cover the financial loss, right? The same goes for title insurance. If there was a potential title issue on a home you are purchasing, you *should* have a title insurance policy to protect yourself and your investment from any financial losses and/or legal issues.
Below we are answering the question ‘What is a title insurance policy?’ to provide insight as to why this insurance policy is vital when it comes to buying (and owning) a home.
Title Insurance 101
First, what exactly does title insurance do?
According to Old Republic Title, title insurance “is a way to protect yourself from financial loss and related legal expenses in the event there is a defect in title to your property that is covered by the policy.”
Therefore, a title insurance policy protects one of the largest investments you’ll ever make – your home.
Why Is a Title Policy Important?
Even after all is said and done with closing and moving into your new home, there is still the potential of a hidden issue with the title. A few examples of potential hidden title issues/defects that will be covered by your owner’s title policy include:
- An error in recording legal docs
- Unpaid liens or unreleased mortgages on the home
- Undisclosed heirs
- Fraud as well as forgeries
- A potential purchaser of your home refusing to accept the title based on the condition of said title
Protect yourself and your home by making a simple one-time payment towards title insurance. And unlike most insurance, this one-time fee will cover your property for the entirety of ownership. No yearly/monthly/semi-annual payments here!
The biggest takeaway we want you to recognize is that this one-time premium not only protects your property, but it also protects you. Because in life, things happen. And title insurance is a simple (and even inexpensive) solution to protecting you from potential homebuying/homeowning headaches!