The 3 things you should know about title insurance

Dear Clients and Friends,

Title insurance might not make your heart race with excitement, but it’s a crucial piece of the home-buying puzzle that you definitely need to understand—especially if you’re considering a move. Let’s break down the three essential things you should know about title insurance.

1. What Title Insurance Does for You and Your Lender

First off, title insurance is your safeguard against losses that could occur from defects in the title of your property. You might be wondering, “What exactly are defects in title?” These are issues like forged signatures in the chain of title, undisclosed heirs claiming ownership, or errors in public records—basically, anything that could challenge your legal ownership or equity in your property.

2. One-Time Payment, Lifetime Protection

Here’s something that may surprise you: Unlike other types of insurance that ding you with monthly payments, title insurance requires just a one-time fee. This single payment continues to protect your property for as long as you, or any of your heirs, maintain an interest in it. It’s a long-term investment in your peace of mind.

3. Protecting Your Growing Equity

If you’re obtaining a mortgage, you’ll be required to buy a lender’s title insurance policy. But what about one for yourself? Most homebuyers don’t realize that they can purchase an owner’s title insurance policy at a discounted rate on the day they close—and up to 30 days after. As you pay down your mortgage and your equity builds, this policy is what protects that growing investment from any external claims.

Why This Matters

As your equity increases, the attractiveness of your property to claimants can also rise. That’s where title insurance steps in, shielding your equity from potential legal disputes. Think of it as a helmet for your property rights: you hope you never need it, but it’s essential protection.