Whether a first-time home buyer or long-time commercial property owner, you should be insuring your title. By now, you may have done some research into insurance coverage for your property. After all, you keep hearing how important title insurance is. However, there are probably still a few things you have questions about in your search. More often than not, you keep coming back to the burning questions: just what is title insurance and why do I need it? We at Tryon Title want to shed more light on what title insurance is and key things you should you know about it. To give you the power of an informed consumer, we will walk you through five things you might not know about title insurance.
1. You should be choosing for yourself!
Did you know that you don’t have to choose your lender’s preferred insurer? That’s right, you have the freedom to pick exactly who you’ll receive coverage with. With a wide selection of providers, you may be a bit overwhelmed. If you take the time to research, a little price comparison can take your wallet miles further than that recommended company. By saving hundreds, you could finally get that hot tub you always wanted!
2. What is title insurance? A one-time purchase
Title insurance is priced simply as just a single premium. This means there is no recurring hit on your bank account to protect your property against legal catastrophe. You likely already pay monthly bills for vehicle coverage and other insurance plans. It’s usually a nice relief to find that a quick purchase can offer comprehensive protection.
3. You can buy it, even if you already own
Don’t smack your forehead if you’re a current property owner: you can buy your coverage at any time. Many purchases are carried out with title insurance being a closing cost. Usually this is a result of the buyer’s lender requiring some financial protection before authorizing a mortgage. For those with no mortgage, you may still be at risk of title defects. In your best interest, you can contact a title company or agency any time to get your coverage.
4. It protects new developments as well
Your land can be victim to flaws in your title, as someone likely owned it in the past. Keep your land guarded against these issues even if you’re building brand new homes or buildings. The history of your land may be an even bigger mystery than a pre-existing building. Imagine an heir to the land goes undocumented, or the true property lines are different than what you bought. Claims to your property can arise and a costly fight for your purchase will follow. Avoid the agitation and breathe easy as you move into the future.
5. Title insurance protects you against the future– and the past
Most insurance is structured to guard against future incidents. This is a feature where title insurance stands apart. The creation of your policy includes a risk reduction process to safeguard you against your property’s history. To explain, title defects can be discovered long before a claim to your real estate can come forth. Your title agency undergoes a document search to uncover these nasty secrets and fix them long before a dispute can form. Then, the policy covers you moving into the future for anything they didn’t find.
The beauty of title insurance is that it is a powerful tool for your peace of mind. We at Tryon Title relish in your happiness with your property. This is why we encourage you to to chat with us as we’ll help you find the best insurance for your hard-earned dollar. If you have more questions, feel free to contact us. We are always happy to guide you towards a satisfying ownership experience.