If you are looking to buy a house in Florida or are in the process of it, you might have heard the phrase ‘Title Insurance’ being mentioned numerous times. Your realtor, attorney, and home inspector officer might have even suggested opting in for Title Insurance. Its importance has been recognized so much that many mortgage agents even insist on you getting a Title Insurance.
What exactly is Title Insurance, and is it worth the cost?
Title Insurance is a powerful instrument you can use to protect yourself against liens and encumbrances on a property you are looking to purchase.
This way, if someone lays a legal claim to the property against assets for a loan that had been taken by the previous homeowner, your Title Insurance will protect you against any monetary or financial asset losses.
A Title Insurance could airlift you out of a property dispute with no losses to handle. But, many homeowners believe that if the seller has disclosed no pending mortgages on the house, then they need not worry about getting Title Insurance. However, having Title Insurance as your safety net is more beneficial than you can imagine.
Let’s look into the many benefits of having Title Insurance:
Title Insurance is well worth the cost
Protection against false Title claims
Imagine closing in on a beautiful house in an amazing Florida neighborhood and getting to know later that the previous homeowner wasn’t, in fact, the owner. There have been several occurrences of family members forging signatures of the actual homeowner and selling off the house.
Title Insurance protects you against such false Title claims and makes sure that you are transferring the closing costs of the house to the real legal owner of the house. Find out the closing costs of your potential house using this Florida Closing Costs Calculator.
Protection against false liens and encumbrances claims
It’s not just a deceiving and false homeowner who you are protected against with a Title Insurance; this insurance also protects you against false liens and encumbrances claims you might receive in the future.
You don’t have to conduct any background checks yourself
Many buyers conduct background checks on the homeowners from whom they are looking to buy the house. They do so to make sure that they aren’t being roped into a bad deal or fraud. Having a Title Insurance makes sure that you do not have to conduct any background checks yourself. This labor-intensive research is conducted by the Title Company from which you have bought the Title Insurance.
Title Insurance also covers unpaid taxes
Other than liens and encumbrances, Title Insurance also protects you against any unpaid taxes or assessments concerning the previous homeowner.
You are protected against filing and document errors
In case there are any unintentional errors during filing or preparing documents that could contest your homeownership, a Title Insurance helps you come out of the situation without having to suffer any financial losses.
The payment is one-time
Generally, insurance policies – be it medical, life, car, or others – require you to pay premiums every month. This can be quite burdensome for many people. These monthly premiums also deter people from taking Title Insurance.
However, it’s important to clear up here that a Title Insurance doesn’t require you to pay such monthly or yearly premiums. The payment for a Title Insurance is one-time, usually at the time of paying the closing costs of your new house.
Clearly, Title Insurance is a blessing to have if you are looking to buy a new house. While the incidents of Title Insurance claims are low, in the case that you do face any issues with homeownership, a Title Insurance will always be there to have your back. It’s better to be safe than sorry and live with buyer’s remorse all your life when you can have Title Insurance and secure your position forever.