Why You Need Title Insurance: Protecting Your Property Investment
When you buy a home, you're not just purchasing the structure and land — you're also acquiring the legal rights to the property. But what if someone else claims they own part of it? What if there’s a hidden lien or a recording error in the property's history? That’s where title insurance comes in.
What Is Title Insurance?
Title insurance is a policy that protects homebuyers and lenders from financial loss due to defects in the title to a property. These defects could include things like:
- Outstanding mortgages or liens from previous owners
- Unknown heirs who claim ownership
- Errors in public records
- Forgery or fraud in past transactions
Unlike other types of insurance that protect against future events, title insurance protects you from past issues that may not come to light until after you’ve purchased the property.
Why Do You Need It?
- Peace of Mind – You’re protected if someone challenges your ownership or a legal issue arises from the property’s history.
- Financial Protection – If a title issue arises, your policy may cover legal fees or even compensate for your loss.
- Lender Requirement – Most mortgage lenders require you to purchase lender’s title insurance to protect their investment in the property.
Owner’s vs. Lender’s Title Insurance
It’s important to note there are two types of title insurance:
- Lender’s Policy – Protects the lender’s interest in the property.
- Owner’s Policy – Protects you, the buyer. This is optional but highly recommended.
Final Thought
Buying a home is one of the biggest investments you’ll ever make. Title insurance helps ensure that your rights to your property are protected from hidden risks. It’s a one-time cost that could save you thousands in legal fees — and a lot of stress — down the road.
Protect your property. Protect your peace of mind. Get title insurance.