I am Buying a Home. Why do I Need Title Insurance?

Before purchasing a home, it is vital that you have a better understanding of title insurance policies that are available for both lender and homeowner protection. If obtaining a mortgage, title insurance will be a requirement to shelter the lender for the full amount of the loan until it is completely paid off.

However, owner title insurance will be something you need to consider if you want to protect your own interests as well, since the aforementioned would not cover your own equitable interests in the property. Typically the purchase of an owner policy can either be covered by the seller, or is something that you can include along with the lender policy for a small investment.

When purchasing a home, buyers are actually obtaining a right to occupy the land and property space which comes in the form of a title. Therefore, insurance is necessary to identify any issues that may be attached to the title of the home before closing on the property.


Several Issues That This Search Could Uncover Include:

  • Easements that may allow for roads, sidewalks, cables, etc. to be built on your land.
  • Judgments or liens that are a result of unpaid taxes or money that is owed.
  • Errors or forged signatures contained within deeds, trusts or wills.
  • Undisclosed heirs or rightful owners to the property.
  • Additional legal issues or pending suits such as divorce that could affect the purchase.

Owner title insurance will protect both homeowners and their heirs from any claims that arise as a result of problems that were initiated prior to obtaining the coverage. In the event that you were to inherit your own liens or judgments against the home, a new policy would then protect the next buyer if these bills were overlooked and remained unpaid upon closing.

Did you know that approximately 1/3 of all title searches will uncover some type of issue on a property? Although these tend to be extremely thorough and accurate, there are still those rare instances where certain matters will remain undetected. Title insurance is the solution for any such cases that may arise.

In the event that you purchase a policy and claims do arise, the policy will reimburse you for any losses that incurred under the coverage. Therefore, the stress, fees and wasted time that you can avoid when faced with such unfortunate circumstances are well worth the small investment.
To get information on reputable title companies that we highly recommend before your next purchase, contact me using the information included on our “Contact Me” tab above.

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