Title insurance is one of the few insurance policies home buyers can take advantage of. However, due to its optional nature, people tend to overlook it.
Title insurance is usually purchased along with the home and it is usually disregarded when people see it as an additional cost on top of the many other add-on fees that come with home buying. This kind of attitude towards title insurance may not always be recommended, as this type of insurance is one of the smartest methods of protection a home owner can avail.
Here are some reasons why title insurance is important:
Title insurance will protect home owners from claims made against their property, whether they are responsible for it or not. This includes mortgage balances that are unpaid, improper foreclosures, and any fraud made by the home’s seller.
Fraud is more accessible to people now more than ever, and real estate isn’t safe from many fraud strategies as well. Forgeries have become easier in this techy era and criminals are more free to sell homes that they don’t actually own. Getting a title insurance will protect you from many frauds like these.
Title insurers are pros when it comes to discovering everything that is suspicious with a property. They do exhaustive research to ensure that your transaction is a legitimate one. And in case it isn’t, the insurance would still cover the buyer for any loss.
One Time Payment
Although the title insurance may require a large drop of money, the payment is made just once. Unlike other policies that require regular payments, title insurance just needs a one time payment made at closing. Mortgage lenders usually require borrowers to pay for their title insurance, so it won’t exactly be a big jump if you get your own policy as well.
These are just few of the advantages getting a home insurance can bring you. And in general, anything that can steer you away from future problems in home ownership is probably worth a shot. Speak with a professional to get better understanding as how you can protect your home from any future dilemmas.
Source: Realty Today