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What Does Title Insurance Not Cover? Key Things to Know

Monday, March 22, 2021

If you're getting ready to buy a house, you've probably been thinking a lot about title insurance. It provides you with important protection, so you don't have to worry about losing the house later.

What does title insurance not cover, though? This is equally important to know. Certain things in your home aren't covered by title insurance, and it's important to get them covered by other means.

Here's a quick introduction to what title insurance does not cover, and how you can protect all of your personal property.

What Title Insurance Is: The Basics

Title insurance is provided when you purchase a house to protect you against claims of ownership by other parties. Although they may be rare, the risk is serious. You could lose the house due to litigation costs if you aren't insured.

In a nutshell, title insurance protects you if someone claims that they are still entitled to part of the house. Say, for example, you buy a house and a few years later an heir of the former owner shows up. They claim that they were willed half of the house- which means that you now are on the hook for half of the value of your home!

This kind of scenario made title insurance the necessity it is today. It's considered to be so important, that in some states, it is an automatic requirement.

Even if you aren't required to have title insurance, it's a good idea to buy it. Most people don't think they'll ever need insurance- until they do! As with all types of insurance, don't wait until it's too late. To find out more about title insurance, talk with a licensed title insurance agent.

What Does Title Insurance Not Cover?

So what does title insurance not cover? To sum it up, title insurance policies leave out most things that are typically covered by home insurance.

Title insurance limits typically include things like furniture and carpeting, water or storm damage, break-ins, and pests. These items are usually insured by your home owner's insurance, which is a different type of policy.

You can think of title insurance coverage as protection against legal issues that might arise around your property and ownership. It covers unforeseen issues resulting from what the previous owners did.

For example, you'll be able to defend yourself if the previous owners misrepresented facts to you, placed a fence out of bounds, or forgot to get a building permit for house repairs. 

Where to Find Title Insurance

So there you have it: a quick summary of what title insurance does not cover. If you still have questions about title insurance or are planning to buy a house, feel free to give us a call or send a message.

When you get in touch with us, one of our title insurance agents will be happy to find out more about your home-buying details and offer expert advice.

Our title insurance company primarily serves eastern Pennsylvania, but we can help you insure any property in the state. Contact us today!

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