You’ve done it—you’ve finally found the perfect place for you to start your family.
The house you just bought is beautiful. It boasts a beautiful yard, exactly the right number of rooms, and every little feature is exactly as you wish.
Now, you need title insurance.
It’s a must for those who wish to establish financial security on their newly bought home. If you’re wondering, what is title insurance, and how it is useful for your property rights?, then you’re in the right place.
In this article, we’ll tell you exactly what title insurance is and show you how you benefit from taking out such a policy. By the end, we should have convinced you to use this insurance strategy to protect your home.
What Is Title Insurance and Why Do I Need It?
Title insurance, in short, is financial insurance on the ownership rights of your house.
In the past, there may have been fraudulent or forged deeds and a person with a more reliable document proving ownership can press their claim and make your house theirs.
Title insurance can protect you from this ever happening again. It first and foremost is used to guarantee financial compensation to you if someone else presses a stronger claim on your house than you do. There have unfortunately been many past instances when inaccurate record-keeping may have allowed a family to wrongfully purchase a home that someone else technically had better rights to.
Moreover, title insurance is mandated by many lenders if you plan to take out a mortgage on your house. So why not go ahead and use this service to take out a policy already?
How Much Does Title Insurance Cost?
Like any other insurance policy, the cost of title insurance will not be constant.
Instead, it will be dependent on many other factors. The most notable factor will be the value of your own home. Other factors could include locality-specific information (e.g. how many claims have been filed in your locality?).
But generally, homeowners can expect to pay $1000-$2000+ for a solid policy, according to research.
Putting it Together
There’s no doubt that the purchase of your home will be one of the most significant decisions that you make in your life.
For most families, their house is the most significant asset that they own!
So why wouldn’t you want to protect it? Given the fairly meagre cost of title insurance (driven down by a fairly low number of claims), you can easily compare it to the value of your home to see how much money it will save you should there be any untoward situations.
Now that we’ve answered the question, what is title insurance?, go ahead and buy a policy to give yourself the peace of mind that you need as a homeowner.
For more real estate advice, take some time to browse through the rest of the articles on our website!