Why Homeowner’s Need Title Insurance

Title insurance is one of the line items that you’ll see whenever you ask a lender for a Good Faith Estimate. And then, you’ll see it again included in your bottom line when it’s time to pay for closing costs. And if you’re the one paying those closing costs or if you’ve ever paid closing costs before, you may find yourself looking line by line at the fees and asking yourself What is Title Insurance and Why Do I Have to Pay It?

home title insurance

The answer is simple, a title insurance policy is meant to protect you, the owner, from any legal claims that are attached to the property. It ensures that your purchase of the property makes it yours outright and clear. This is a necessity because the land or property itself could be in dispute from any previous altercations.

A property might have a very long history of owners and just looking at a property title isn’t good enough. A title insurance company will do the research necessary to make sure there are no second mortgages, liens, or judgments against the property (including the land a unit is built on).

Having title insurance will protect you should any scenario occur in the future that challenges your deed and ownership of the property. Chances are, you may not ever see a claim against your property while you own it, but you may probably feel safer knowing that you’re covered if any disputes ever did come about. Title insurance is a one-time fee that is paid at the closing of a new home and in the grand scheme of things, it’s a minimal cost.


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