Just like you need health and car insurance, if you’re a homeowner, you need title insurance. Having insurance on your property title acts as an extra layer of protection in case anything should go wrong with your property documents.
It is actually not that uncommon for homeowners to find issues with their homes after they’ve signed the closing paperwork. This can put you in a very stressful situation— one that you would have negated had you purchased title insurance.
Walnut Ridge Title in Ohio can help you better understand the details of this type of insurance. If you have further questions, feel free to give us a call at one of our local offices. In the meantime, here are 3 reasons why every homeowner needs insurance.
What is Title Insurance?
This insurance is a document that is prepared by a title insurance agent. The agent will be responsible for researching the records of previous owners to ensure they have maintained full rights to the property. Imagine finding out that an owner had forged documents and then sold you the property. Without insurance, your investment wouldn’t be secure and your home could even be taken away.
This insurance protects you from forged claims such as this and it also ensures that you aren’t held responsible for things such as unpaid taxes or omissions in the deed. Essentially, it just gives you peace of mind. You will know that your rights are protected from any legal title discrepancies that may arise in the future.
Benefits For First Time Home Buyers
A first-time homeowner’s title insurance is especially impactful. A home purchase is one of the largest investments you will ever make. And having insurance stating your rights as the official homeowner is going to drastically reduce any risks.
Purchasing a home for the first time will more than likely hit you with a few roadblocks that you weren’t expecting. So if your title agent asks if you want title insurance during the closing process, the answer should be obvious. Get the insurance if you want to feel secure in your purchase. On top of that, the insurance is a simple, one-time fee that can be calculated into your budget at the start of your home search.
How Owner’s Title Insurance Benefits All Home Buyers
But it’s not just first-timers that find benefits for this type of insurance. Investors, flippers, and commercial real estate buyers also recognize its value. Here is a quick breakdown of all the benefits that title insurance provides:
1. It Alerts You of Any Property Issues
A title insurance agent will dig deep to find up-to-date records on your property. It will alert you of any unclaimed heirs tied to the property, outstanding legal actions taken against the property owner, as well as any issues with mortgage payments. Likewise, the insurance covers your heirs so you can rest assured that your property will stay in the family should anything happen to you.
2. It Reduces Your Risk
It’s not uncommon for forged documents or clerical errors to happen during a property sale. If you have insurance on the property title, however, you won’t be held legally responsible for any discrepancies. Fraudulent claims, clerical errors, and unpaid taxes can also be handled easily with insurance because the documents will clearly be defined.
3. It Protects Your Investment
Purchasing a home calls for a considerable down payment. With large sums of money on the line, you want to make sure that your money is being filtered to the proper outlets. Misappropriation of funds or outstanding mortgage payments can all be avoided if you purchase title insurance.
Overall, having insurance on your property gives you solace in knowing that everything is on record. With everything clearly spelled out in your title insurance, you can handle any legal disputes thrown your way.
Have more questions? Contact Walnut Ridge Title today!