Title Company Insurance
Title company insurance is used to protect against financial losses when a property is purchased. The ownership history of a property has to be thoroughly examined to determine what, if any, claims exist against the property. Oftentimes, this comes in the form of liens or levies. This quick guide will answer the question, “Is title company insurance worth it?” so you know what the best course of action is for you.
First off, insurance is important for the aspect of title defects. As previously mentioned, a research company examining the history of the property will check for anything out of the ordinary. However, sometimes there are issues that have yet to be discovered. These instances can include things like unknown heirs to the property or errors in the ownership history. In these situations, insurance protects you even if these issues are not discovered until much later down the road after purchase.
When you purchase a property, a warranty deed is typically included. This represents the seller telling the buyer that the property has been cleared. However, this does not mean you are risk-free. The lender is protected by title policies, but your stake in the property might not be. Even if a title claim happens years after your purchase, you are still at risk without insurance.
Ultimately, title company insurance is worth it because of its thorough protection against these issues. The price of title company insurance protects you against worst case scenarios from happening. Because of this, it’s better safe than sorry.
The Right To Choose Your Title Company
Who doesn’t want a smooth, worry-free closing? Venture Title Company can help. Join thousands of Michigan home buyers and sellers who trusted Venture Title Agency to guide them through the critically important title-closing process. Contact us today to learn more!