When you close on a home purchase, title insurance will be one of the purchases that your lender requests you add. But is this extra cost worth it? If you don’t know what title insurance does to protect you, you may be unenthusiastic about adding additional expenses to your home purchase. However, title insurance is very much worth the cost for a new homeowner. Read on to learn just how title insurance can become a crucial asset for your home.
What Title Insurance Does
Title insurance offers protection against any future claims someone can place against the ownership of your home. There are also two types of title insurance policies that exist: the lender’s policy and the homeowner’s policy. Each policy protects the lender and the homeowner, respectively, from costs associated with defending your home title and ownership. Each policy only gets paid for once, as opposed to monthly recurring payments. Title insurance is worth the cost, particularly because you only have to pay for it one time.
How Title Insurance Can Protect You
However, you may be wondering whether title insurance is worth the cost if you won’t ever have to use it. How often can title issues arise? It may surprise you how often title issues can occur, and because title insurance only needs to be paid for once, it is better to have this tool available in case of title claims. Typically, before your home purchase, the title company will conduct a title search to detect any potential problems and resolve them. These problems can include existing liens. However, issues like unknown heirs claiming ownership can arise after the purchase of your home. For these instances, you need title insurance to help cover costs incurred while proving your ownership.
So, Is Title Insurance Worth the Cost?
Ultimately, yes, title insurance is worth the cost. Hidden issues can occur at any time, and protecting your homeownership is essential. While title searches are thorough, many small things can be used by someone else to assert their claim. If a title defect occurs or is found, having protection through title insurance is the best way to protect your homeownership.
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.