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What Title Insurance Protects Against

Thursday, August 15, 2019

If you're buying a home, there's no shortage of details to consider, from the neighborhood to the landscaping and interior features.

When it comes to protecting your home, you're already familiar with the standard homeowner's insurance policy.

But what about title insurance? It's important to know just what title insurance protects so you understand the benefits it provides. Read on to learn more so your new home will be properly protected.

Contractor's Liens

If the previous owner had some remodeling done but never paid the contractor, the new owner could be responsible for the balance. With title insurance, you're protected against any liens the contractor might try to put on your home.

In most cases, title insurance protects the new homeowner from any court disputes or other financial battles between the prior owner and the contractor. 

Title Insurance Protects the Title Itself

Sometimes, a home can become the center of a long battle between spouses or family members. Something called a "clouded title" can get in the way of the title being free and clear.

With title insurance, you're protected if an old family member comes later on to try and claim that the property as theirs. Once you own the home, the title insurance helps to ensure that the new title is yours one-hundred percent.

Acts of Fraud

Title fraud is more common than you might think. Whether someone is falsely impersonating you as the owner, or there's a forged deed or will somewhere along the way, your title insurance will protect you.

In some cases, someone may claim that they actually own the home as a family heir, even if this is not true. With title insurance, you're safe against any fraudulent claims that may be made against the title after you own the home.

Errors

Whether it's a clerical error or an issue filing the title properly with your local jurisdiction, title insurance protects you from these common problems. Processing a new title transfer is always subject to human error, so the insurance is there to make sure you're not a victim to a clerical error.

This protection can include anything from gaps in the title chain to improperly marked property lines. As the homeowner, you shouldn't have to pay or suffer due to someone else's mistake.

What It Doesn't Cover

There are some things that title insurance does not cover including:

  • Issues with condemned land
  • Title defects or issues that were not recorded after the closing
  • Any zoning or building code violations
  • Encroachment issues or concerns about the shortage of the area of the property
  • If you live near a body of water, it does not usually cover any right of usage claims

Protect Your Home

Now that you know what title insurance protects, you can have peace of mind when you go to close on your home. This valuable insurance will ensure that your home's title is safe from unscrupulous liens, claims, and other errors.

Call us today for a quote on your title insurance and be sure to visit our website for lots of helpful information, tips for buyers, and more. 

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