Buying a home is probably one of your most significant financial decisions. When you purchase a home, you and your lender want to guarantee that the property’s title is yours. Title insurance assures you or your lender any against losses. This policy covers either the homeowner or the mortgage lender, but you’ll need to pay for both types for your closing costs.
Why Do You Need Title Insurance?
Purchasing a lender’s title insurance policy is compulsory to process your mortgage. However, buying title coverage as a homeowner is also a good idea.
- Title Insurance Protects You from unreported liens.
- Title insurance can reimburse you for damage or legal costs in various situations.
- Covers you from forged transfers of ownership rights.
- Protects you from Unintentional errors in recording or filing documents.
What Does Title Insurance Cover?
Title issues may arise when buying a property. Some examples of risks covered by title insurance include:
- Missing heirs
- Unpaid taxes
- Unreleased mortgages
- Fraud and forgeries
- Unpaid liens and judgments
- Incompetence of grantors
- Wrong execution of documents
- Errors in indexing legal documents
- Impersonation of the owners of the land
Is Title Insurance Really Worth It?
Going without title insurance is risky when you’re buying a home. Title insurance protects you and ensures you don’t get stuck paying someone else’s debt to salvage the property you spent your hard-earned money to buy. Therefore, obtaining title insurance is worth it.