You Need to Ask these Important Questions about NC Title Insurance

A young couple receiving the keys to their new home.

When you buy a home in North Carolina, it’s important to protect yourself with a thorough insurance policy. That’s why we recommend all homebuyers, whether it’s your first home or your fifth, take out a comprehensive North Carolina title insurance policy.

While title insurance is not legally required, having a policy on your property will ensure peace of mind throughout your homeownership.

Simply put, title insurance protects you in the event of any issues with your title. If you’ve never purchased title insurance before, it’s time to do some research and ask your insurance provider these important questions.

Do I Really Need Title Insurance to Purchase Real Estate in NC?

When you buy a home, the property’s previous owner will transfer the property’s title to you. Title insurance protects your claim of ownership to that property, as well as the equity you build as you pay your mortgage over time.

While title insurance is not legally required, we highly recommend all North Carolina homebuyers take out a sufficient title insurance policy. This way, their equity is protected in the event that something comes up with their title.

Even if you’ve already paid for a title search and it comes up clean, you may still be at risk. Oftentimes, negligence and fraud do not appear on title searches! If something were to come up and you did not have a title insurance policy, you may still be at risk.

How Does Title Insurance Protect Me?

Let’s say you buy a home for $250,000. You pay your mortgage payment every month and then some, and this goes on for many years. Over 10 years, you pay off more than half of the loan, meaning you now have over $125,000 worth of equity. All of a sudden, a relative of the last owner appears and claims that the home is actually theirs. They helped the last owner purchase the property and their name was on the title at one point.

They can take you to court over ownership of the home—and if they win, you could lose your equity and rights to the property. If you have a title insurance policy, you’ll be reimbursed for your court fees and, should you lose, the equity you’ve built up in the home up to the amount of your policy.

Who Pays for Title Insurance?

In North Carolina, the buyer is responsible for purchasing owner’s title insurance.

However, you may also be responsible for purchasing lender’s coverage title insurance for the lender financing your home loan.

Luckily, title insurance in North Carolina is very affordable! You’ll pay a one-time premium when you buy the property. This premium is based on the market value of the home.

You’ll only have to pay again should you choose to refinance your home later on down the line.

How Long Does Title Insurance Last?

Once you purchase title insurance in North Carolina, that’s it. The title insurance will last the entire amount of time that you own the home.

Lender’s title insurance coverage, however, only lasts for the amount of time that you have a mortgage loan. Once you pay off your mortgage loan, the lender’s coverage ends. At that point, however, you’ll only need your owner’s coverage policy.

Tryon Title: Your Top North Carolina Title Insurance Provider

At Tryon Title, we provide our customers with fast customer service, laser-sharp accuracy, and 5-star customer service. Our title insurance professionals are here to help you find the coverage that’s right for you.

For more information on obtaining title insurance in North Carolina, please don’t hesitate to give us a call.