How Important is Owner's Title Insurance?

Buying a home is an exciting and significant milestone in your life. It's a time when dreams come true and new beginnings are made. However, it's crucial to protect your investment and ensure that you have clear and marketable title to your property. This is where owner's title insurance comes into play.

What is Title Insurance?

Title insurance is a type of insurance that protects homeowners and lenders from financial loss due to title defects or issues with ownership rights. It provides coverage for legal expenses, such as defending against claims against your title, and compensates you for financial losses resulting from covered title defects.

How Does Title Insurance Work?

When you purchase a home, a title search is conducted to determine the history of ownership and any potential issues with the title. This search is performed by a title company or an attorney who specializes in real estate law. If any problems are found, such as unpaid liens, forged documents, or undisclosed heirs, the title insurance policy kicks in to protect you.

What Does Title Insurance Cover?

Title insurance covers a wide range of issues and risks associated with the title of your property. Some of the common risks covered include:

• Unpaid taxes or assessments
• Unknown liens or encumbrances
• Forgery or fraud
• Errors in public records
• Undisclosed heirs
• Boundary disputes

How Much is Title Insurance?

The cost of title insurance varies depending on the location of your property and the purchase price. On average, title insurance can range from $500 to $3,500. It's a one-time fee that is typically paid at closing.

Do You Really Need Title Insurance?

While title insurance is not required by law, it is highly recommended for homeowners. A bad title can cause complications and turn your dream home into a nightmare. Title insurance provides peace of mind and financial protection against unforeseen issues with your property's title.

The Bottom Line: Title Insurance Protects You From Financial Loss

Investing in owner's title insurance is a smart decision that can save you from potential financial loss. It ensures that you have clear and marketable title to your property and protects you from unexpected issues with the title. Don't risk your investment, protect it with owner's title insurance.

Related Resources

See What You Qualify For

Owner's Title Insurance Policy

Lender's Title Insurance Policy

Alternative To A Title Policy: Warranty Of Title

Can You Lower Your Title Insurance Cost?

What Title Fees Will You Pay At Your Closing?

Rocket Sister Companies

At Rocket Companies, we understand the importance of protecting your investment and ensuring a smooth homebuying process. That's why we offer a range of services to help you navigate the world of real estate. Whether you're looking for title insurance, mortgage financing, or a trusted real estate agent, we've got you covered. Connect with us today to learn more about how we can assist you on your homeownership journey.