5 Reasons Homeowners Need Title Insurance

Buying a home is exciting and emotional all at the same time. Ease some of the stress and buy with greater confidence when you get an owner’s title insurance policy. If you aren’t sure what title insurance is, make sure to check out our past blog post Title 101. In the meantime, check out five reasons why every homeowner needs title insurance.

1. PROTECTS YOUR FINANCIAL INVESTMENT
For most, buying a home will be one of the largest, if not the largest, financial investment made in a lifetime. Title insurance is designed to protect that purchase by insuring your ownership rights to that property. Sure, you may purchase homeowners insurance but that only protects the structure and belongings of your property. Homeowners insurance will not prevent or provide legal aid if someone else comes along and claims ownership of the property itself. That’s where an owner’s title insurance policy comes into play.

2. MINIMIZES RISK
When purchasing a home, there are several issues that could be lurking beneath the surface. We often sweat the inspection report or appraisal, but equally important is the title search and the behind the scenes work to clear title defects. Getting an owner’s title insurance policy is the best and only way to protect yourself from unforeseen legal and financial title discrepancies, many of which can arise after closing. Don’t think it will happen to you? Think again. Unexpected claims could include:
– outstanding mortgages or liens from unpaid debts, taxes, etc.
– pending legal action against the property
– unknown heirs to the property
– the list goes on…..

3. PROVIDES MORE BANG FOR YOUR BUCK
Unlike homeowners, car, health and other insurance policies, an owner’s title insurance policy is a one-time fee. This policy premium is based on the purchase price of the home and regulated in the state of Texas by the Texas Department of Insurance.

4. CONTINUAL PROTECTION—LASTING YEARS, DECADES OR EVEN LIFETIMES
Like mentioned in reason No. 3, you only pay for an owner’s title insurance policy once, and this policy will actually stay in affect as long as you or your heirs own the property. Meaning, a title insurance policy could last lifetimes.

5. PEACE OF MIND
Ultimately, purchasing an owner’s title insurance policy is really about financial protection like we mentioned above and peace of mind. Knowing that you are protected from inherited title defects and potential claims is priceless. You can rest assured and enjoy your new purchase.