Why Every Homebuyer Needs Owner’ Title Insurance

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Buying a home is an exciting and emotional time for many people. To help you buy your home with more confidence, make sure you get owner’s title insurance.  Here’s why it’s so important for you.  

A home is probably the single largest investment you’ll make in your life. You insure everything else that’s valuable to you—your life, car, personal property, health, pets, jewelry, etc.—so why not your largest investment? For a one-time fee, owner’s title insurance protects your property rights for as long as you or your heirs* own the home. 

If you’re buying a home, there are many hidden issues that may pop up after purchasing it. Getting an owner’s title insurance policy protects you from legal title discrepancies. Don’t think it will happen to you? Think again. Here are just some of the many situations that you’ll be protected from if you have owner’s title insurance. 

Unforeseeable title claims, such as:

· Forgery: making a false document  (example, seller misrepresents identity of other party selling property)

· Fraud: deception to achieve unfair gain (example, someone steals your identity and without your knowledge or consent, either sells your house or puts a second mortgage on the property - walking away with the money)

· Clerical error: inconsistent paperwork and historical records (example, an unforeseeable discrepancy in the property or fence line causes confusion in ownership rights) 

Unexpected title claims, such as:

· Outstanding mortgages and judgments, or liens against the property (example, seller didn’t pay required taxes or Certificates of satisfaction not recorded)

· Pending legal action against the property that could affect your ownership

· An unknown heir of a previous owner who is claiming ownership of the property

Owner’s title insurance is a one-time fee that’s very low relative to the value it provides. It typically costs around 0.5% of a home’s purchase price.   

Home insurance and warranties protect the inside of the home, but only an owner’s title insurance ensures you or your heirs property rights stay protected.  

Owner’s title insurance lets you rest assured, knowing  you won’t be stuck with existing property related legal problems after you’ve closed on your new home.

More Homebuyer Tips & Information

The American Land Title Association helps educate homebuyers like you about title insurance so you can protect your property rights.   Check out www.homeclosing101.org to learn more about title insurance and the home closing process.