4 Benefits of Buying Title Insurance for Your New Home

The purchase of a house is a significant event in your life. Therefore, you want to make sure you do everything right. Part of this process is buying title insurance. This type of insurance is purchased through a real estate attorney and will protect you against any type of financial loss you sustain pertaining to defects regarding your new property.

While having title insurance is usually not required by law, the lender that gave you the loan to buy the property will almost always require you to have it. Even if there is no such requirement in your situation, below are reasons why you should purchase title insurance.

1. Reduces your risk

There are a lot of unforeseen discrepancies when buying a house that will not only affect you financially but also consume your time. For example, after buying a house, it is possible for the previous occupant to claim ownership of the house which will make it necessary to go to court. Alternatively, the house you are buying could have liens against it or you may have found something wrong with the property that was not disclosed in the purchase agreement.

Purchasing a title insurance policy will not only save you time it would take to try to recover any losses or defending yourself against any legal action but also the money it would take to hire legal representation as well as to pay for any documentation and plans related to the property. Title insurance assures you that once you have closed the deal of the house, you will not inherit any legal or financial issues of the previous occupants. It will also give you some recourse to seek legal action with a real estate lawyer regarding anything wrong with the house that was not disclosed beforehand.

2. Protects your largest investment

Nothing you own will be of greater value than your home. If you have protected your other assets through insurance for things such as vehicles, health, and maybe even pets, then it would make sense to protect your home as well.

Protecting your home with title insurance is sensible because the policy will protect your property rights for as long as you occupy the home. Not only this, it will also cover your heirs as long as they hold title to the property, ensuring they are protected against situations such as rezoning, encroachments, and building permit violations of the municipality or nearby neighbours.

3. Great value

The value of the title insurance is one of the main reasons why you should buy it while purchasing your home. It is the cheapest and the most convenient insurance that you can purchase to protect your investment.

When you purchase title insurance, you make a one-time payment that is usually approximately 0.5 percent of the value of the house you are buying. When compared to the value title insurance will provide, this cost is very low.

Buying title insurance when purchasing your house is smart because no insurance company is able to offer such a policy. Most insurance companies will only offer protection against the structure and the belongings but will fail to protect the owner’s rights pertaining to the title of the property. Therefore, purchasing title insurance while purchasing your house will ensure that your family’s property rights stay protected as long as they have possession of the home.

4. High acceptance rate

The high acceptance rate of title insurance is one of the main reasons why you should buy it when purchasing your home. The most recent statistics reveal that title insurance is the most popular insurance policy among home buyers.

Statistics show that in 10 home buyers, 8 prefer to protect their home and family with title insurance as compared to other similar policies. This is due to the protection it offers at such an affordable price.