Title Insurance- Why its so Great!

Real Estate Agent with Metro First


 When buying a home you will have the option to purchase title insurance depending on how you finance the payment. If you are like most of us you are thinking... what is it? and why do I need it?

Title insurance is an insurance policy in which you will pay a one time cost, that will cover you, your home, and any expenses incurred due to deficiency in the title of your home should one arise.

You will need this very important insurance because, if there is a lein, claim, error in public records, or mistake in examination of the title to your property... YOU will be the first held accountable, and that is where the title insurance will defend you at no cost and reimburse you up to the face amount of your policy for any loss.

Not only does it cover you while you are the current owner, it will protect you after you have sold it. Let's say a lein or such is erraneously put on the title when you occupied the home, however you knew nothing of it when you sold the property (and apparently it wasnt found).  5 years down the road it comes up, well the current owners insurance company (if they bought it) will go to yours to correct it, your title insurance company will pay to fix it and the problem will not affect you. Now if you knew or did something fraudulently that is a different story, it will affect you and the consequences are not fun!

You, as the home owner are better off safe than sorry, and with the pretty much lifetime benefits of this sort of insurance, I'd say you need it! 


The above information is only a scenario, please speak with a title company to discuss actual policy agreements and such.

Comments (0)