What’s Title Insurance?
We’re sure you know what title is, but do you know the answer to the question ‘What’s title insurance?’ If you do, then you’re ahead of the game! If you’re not sure, then read on for insight from industry pros.
Part One: The Definition
Simply put (and courtesy of 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.”
In essence, Title ensures that you are protected against potential policy defects. Keep in mind that these defects could be things that the normal person cannot see on the title of a property. Which is why an awesome title insurance company works hard for you and your investment.
Part Two: How Does It Differ from Other Insurance?
Unlike your typical homeowner’s plan that you pay monthly/quarterly/annually/etc., title insurance is a one-time fee. That’s it. No hidden fees or the possibility of an increase in rates. This one-time fee is paid up front during the homebuying process and then you’re protected for life. Or, as long as you decide to own the property.
Another difference is that unlike other insured policies that prevent future issues, title insurance protects you from past issues/defects. Basically, the past does not affect your present/future with a title policy.
Part Three: Final Words
We’ll leave you with this example. Imagine purchasing a house that was originally built 100 years ago. That is a lot of history and ownership, right? And who knows what previous owners did or did not pay. Or even properly do while owning the property.
Don’t let the past become your present. Purchase a one-time fee title policy today for peace of mind and to protect your largest investment.