Owning a home is a huge accomplishment, requiring many steps. A crucial step to the homebuying process it to secure the title of the property. Having the title to the home means your name is identified in connection with property ownership. 

What is title insurance? 

Title insurance offers protection for lenders and homeowners and acts as financial coverage when unexpected matters arise. 

For example, discrepancies, such as back taxes or title disputes, are covered under this type of indemnity insurance. 

This prevents the homebuyer or lender from being held liable and protects against types of financial loss that may occur with a defective title.

Getting the right coverage

It’s crucial to make sure you’re covered properly as a homeowner. For example, there is lender’s title insurance and owner’s title insurance. If you’re the property owner, and there’s a lien discrepancy resulting in financial loss, you’re not protected under lender’s insurance. You must have your own insurance for coverage. 

While mortgage lender title insurance is required, title insurance for owners is optional.  Hiring a real estate attorney can be beneficial as they can help in understanding why you need to invest in title insurance and it’s benefits. They can also assist in identifying items in need of coverage as you determine the best package to purchase.

What does title insurance cover? 

Title insurance for owners covers against these primary things:

• Opposing ownership claims.
• Property deed errors.
• Any liens on the property. 
• Forgery. 
• Mistakes such as faulty signatures. 
• Incorrect records. 
• Etc. 

Having owner’s title insurance adds an extra layer of security against the unknown. Consider speaking with a real estate attorney today to learn more about title insurance options.