What Makes Title Insurance Worth Adding

what makes title insurance worth it

Learn what makes title insurance worth adding to your closing costs.

For most homebuyers, title insurance is just another item on the list of closing costs. You may know that your lender requires a lender’s policy for their protection, but you may ignore the owner’s title insurance offer. But when you don’t know what title insurance is, you can’t determine whether it will be worth the cost. In fact, title insurance can be quite beneficial and should not be overlooked. Read on to learn more about what makes title insurance worth adding to your closing costs and why you don’t want to regret skipping this expense. 

What Title Insurance Is

Title insurance is a policy designed to protect the ownership of a property. During a real estate settlement, two different insurance policies are offered: the lender’s policy, which is required, and an optional owner’s policy. Both of these policies are a one-time cost that protects your rights for as long as you own the property. Before you finalize your title insurance purchase, the title company you have chosen to work with will conduct searches to clear the property’s history of ownership. 

What Your Title Company Searches For

During this title search, the title company will look for items such as: 

  • Outstanding mortgages
  • Judgments
  • Liens
  • Unpaid taxes on the property
  • Any restrictions, easements, leases, or other issues

A search is meant to find any issue that may disrupt your ability to claim ownership of this property. They may also order a survey to determine the boundaries of the plot of land. 

Why Buy Title Insurance for a “Clean” Property? 

So your title search comes back clean, and your title is clear. Why should you then buy title insurance? There is always a possibility that some undiscovered issues may arise and affect your ownership even years after purchasing your home. A clerical mistake, an error by the title examiner, an unknown heir, or improper filing of documents could create problems. Any title issue that arises after a settlement could result in expensive legal fees and even the loss of your property. Title insurance protects you from those hefty fees

What Makes Title Insurance Worth Adding

While many may make an argument against adding another expense to your closing costs, if any title defect comes up at any time, it would cost you significantly. What makes title insurance worth adding to your closing costs is that, for a one-time fee, you can know that you are insured for any potential surprises for as long as you own the property. If you plan on owning your home for decades as your family grows, this cost becomes minimal. 

A Title Company You Can Trust: Colony Title

At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.

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