Buying or selling a home is usually the most significant financial transaction of your life. You also want to get it right the first time by getting title insurance. You might ask yourself, do I need title insurance? Yes, you do. Title insurance protects you from costly losses and damages and legal liabilities related to title inaccuracies. Mortgage lenders also require title insurance to close on the purchase of a home. Here are 5 reasons why you need title insurance!
Protects Your Investment
The first and most important reason why you need title insurance is that it protects your largest investment – your home. You insure everything else that’s valuable to you, such as your life, car, personal property, and health. Why not your home? For a fee, an owner’s title insurance protects your property rights for as long as you or your heirs own the home.
Reduces Your Risk
When you are purchasing a home, many hidden issues may turn up. An owner’s title insurance policy helps reduce the risk of legal title discrepancies. For instance, unforeseeable title claims like forgery, fraud, clerical error, outstanding mortgages, judgments, or liens against the property because the seller did not pay required taxes. In another case, a pending legal action against the property that could affect your ownership. Or an unknown heir of a previous owner may be claiming ownership of the property. Title insurance will help reduce your risk of these unpredictable claims.
Offers Peace of Mind
Another reason you need title insurance is that it provides peace of mind. If you’re buying a home, then the owner’s title insurance lets you rest knowing that you are protected from inheriting possible debts or legal problems once you have closed on your new home. You deserve a perfect closing process!
Protects Your Heirs
As long as you or your heirs own your home, the owner’s title insurance protects your property rights. In addition to this, if you decide to sell your property, then your title insurance can protect you from financial loss if the sale falls through due to a covered defect in your property’s title.
Every year, more than 80% of America’s homebuyers choose to get an owner’s title insurance because it is worth it. Title insurance is paid with a one-time premium at closing and has no monthly payments. Plus, it typically costs around 0.5% of a home’s purchase price.
While getting title insurance is a choice, we highly recommend having title insurance when purchasing a home. You can choose your own title company. You can determine your own title insurance company for both lenders and homeowner’s title insurance, although few people do so. If you’re considering purchasing a homeowner’s policy for yourself, it makes sense to do your research. Choosing the right title company when you are buying or selling property is extremely important. This important decision can be the difference between a successful or failed transaction. Therefore, you have the right to choose your own title company. If you decide to choose Venture Title Agency as your title company, we will work hard to ensure your closing is complete, correct, and timely. Schedule your closing with us today!