What Is Home Title Insurance, and What Should You Know?
Your home is one of your greatest assets, and keeping it safe is important. If you’re in the market to get or renew your home title insurance, you’ll need to know what you’re doing.
Otherwise, you could end up with an insufficient policy or a useless one. With this guide, you’ll be able to make the best choice for your home.
Whenever you’re buying or selling a home, you should always consider getting title insurance for any potential issues with your title.
So read on and find out more about this type of insurance.
What is Home Title Insurance?
A home title insurance policy is an insurance policy that a homeowner can purchase to insure the ownership of their home. The policy will protect the homeowner from any legal claims that may arise from the ownership of the home. The policy will also cover any damages that may occur to the home as a result of the ownership.
There are several reasons why you need to get a home title insurance policy.
Lender Requirements
First, if you have a mortgage on your home, your lender will require you to have a policy in place. This is because the lender wants to be protected if the title to your home is challenged.
Risk Protection
Even if you don’t have a mortgage, a home title insurance policy can protect you from several different risks. For example, if someone challenges your title to the property, or if there are any liens or encumbrances on the property that you were not aware of, a title insurance policy will protect you from having to bear the costs of resolving these issues.
Finding Undisclosed Heirs
When you purchase a home, you want to be sure that the title is clear and that there are no undisclosed heirs that could potentially lay claim to the property. A home title insurance policy will protect you from any financial losses that could occur as a result of these heirs being discovered.
Encroachments
One of the most important reasons is to protect yourself from potential legal issues that could arise from an encroachment. If you do not have insurance and there is an issue with an encroachment, you could be sued and have to pay damages.
Forged Documents
One of the most important reasons is to protect yourself from forged documents. Forged documents can be used to fraudulently transfer ownership of your home, or to take out a loan on your home without your knowledge. A home title insurance policy will ensure that any forged documents are detected and voided so that you can keep your home and your equity safe.
Liens for Unpaid Taxes
Unpaid taxes can create a lien against your property, which could force you to sell the home to pay off the debt. A home title insurance policy will cover you for any unpaid taxes, liens, or other debts that may be owed on the property, ensuring that you can keep your home and avoid any financial loss.
Lawsuit or Disputes
This type of insurance also protects you from forgery and fraud that could potentially invalidate your home ownership. If you are faced with a lawsuit or dispute regarding your home, title insurance will also cover the costs of legal fees and any damages that may be awarded. Essentially, title insurance provides you with peace of mind and protection against a multitude of risks and potential problems that could arise concerning your home.
Omissions in Deeds
You may assume that the title to your home is clean and clear because your home was purchased with a deed that was properly recorded at the local courthouse. What you may not know is that even a small mistake in the deed – an omission, for example – can create problems when you try to sell your home or take out a home equity loan. That’s why it’s important to get a home title insurance policy to protect yourself from these risks.
Mistakes in Records
Even if you have a deed or mortgage that is correctly recorded, there could be errors in the underlying records that could result in a loss of your interest in the property. Title insurance can protect you from these mistakes and give you peace of mind in knowing that your interest in the property is protected.
Fraudulent Claims
Some of the most common types of fraud include forging documents, such as deeds, mortgages, and leases, and making false statements about the property, such as its value or condition. Title insurance for homeowners can help you uncover these types of fraud and protect your investment.
When Do You Apply For Home Title Insurance
When you purchase a home, you will need to apply for home title insurance. This insurance protects you from any legal claims that may be made against your home.
To apply for home title insurance, you will need to provide the following information: your name, address, and contact information; the property address; the purchase price of the home; and the date of purchase. You can apply for home title insurance through your lender or an insurance company like the LoPriore Insurance Agency.
Never Delay Having Home Title Insurance
Home title insurance is one of the most important things you can buy when you purchase a home. It protects you from any financial loss if there are any problems with your home’s title. never delay having a home title insurance policy. It could save you thousands of dollars in the long run.
For more helpful tips, visit our main blog.
