What is Title Insurance and Why Do I Need It For My House?
We’ve received our fair share of questions regarding title insurance. What is it? Do I need title insurance? Is it required? How long does title insurance coverage last?
In this blog, we will answer all your frequently asked questions regarding title insurance.
What is title insurance?
So what exactly is title insurance? To put it simply, title insurance protects homebuyers and mortgage lenders against any potential property loss or damage they might experience. It is a one-time, upfront fee paid when you close on a property sale.
It is not to be confused with the yearly homeowners’ insurance that covers losses due to fire, weather, other types of property damage, and even theft.
Do I need title insurance?
Purchasing a piece of property is a huge financial move. Having title insurance ensures you and your lender are protected against the possibility that the seller (or maybe previous sellers) doesn’t hold full ownership of the house – which means you can face the risk of losing your new home
What else does title insurance cover?
Apart from the incorrect ownership risk, title insurance also covers unpaid mortgage loans, property taxes and any outstanding debts the title company. might have missed. Conflicting wills, mistakes in recording legal documents, undisclosed heirs and forged deeds are also common claims that can be covered.
With title insurance, you can file a claim and your insurer will be able to help you cover the costs of the amount being owed.
How much does title insurance cost?
The cost of a title insurance is based on the closing price of the house. It differs from state to state.
In most Florida counties, the seller pays for the title insurance at closing. However in Sarasota County, Collier County, Miami-Dade County and Broward County, the buyers typically for title insurance and choose the title company as well.
Title issues are a rare occurrence. However, it is a huge risk if you choose not to get title insurance. As mentioned, you could potentially lose your newly bought property. The benefits really outweigh the cost when it comes to title insurance.
