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Do I need Title Insurance?

Imagine you work hard and save your hard-earned money to invest in the house of your dreams. You move into your dream home, but you are unable to enjoy it because the previous homeowner did not pay their property tax on that house. Without title insurance, the financial burden for this claim for back taxes rests solely with the buyer. That is not an ideal scenario when trying to enjoy possibly one of the biggest investments in a person’s life.

Thankfully, there are companies like Innovative Title Services that make it their mission to give you that peace of mind you deserve when it comes to enjoying your dream home. When you buy title insurance for your property, a title company searches (and remedies them, if possible) for all of the property’s public records, like previous ownership of the property, liens, levies, and other detractors that might affect your new property. After the search, the underwriter will determine the insurability of the title.

Title Insurance refers to the protection of lenders and buyers from financial loss due to defects in a title to a property. Having no title insurance exposes transacting parties to significant risk in the event a title defect is present. “One out of every three searches reveal a title or public record defect that is fixed before the transaction closes” says Jeremy Yohe, spokesman for the American Land Title Association.

There are two distinct types of title insurance, lender’s insurance and buyer’s insurance. If you take out a mortgage loan when you buy your property, your lender will require a loan policy of the title insurance. This protects the lender’s interest in your property until your loan is paid off or refinanced. An owner’s policy, on the other hand, insures your ownership rights to the property and the coverage lasts as long as you own your home.

Title Insurance differs from other types of insurance (such as car, life, health, etc.) because while the latter protect against potential future events, a title insurance policy insures against events that occurred in the past of the real estate property and the people who owned it. A basic owner’s title insurance policy typically covers hazards like:

· Ownership by another party.

· Incorrect signatures on documents, as well as forgery and fraud.

· Flawed records.

· Restrictive covenants, such as unrecorded easements.

· Encumbrances or judgments against property, such as outstanding lawsuits and liens.

· And more…

Don’t allow any of these hazards to prevent you from enjoying your dream home. Make sure you are protected against any unforeseen consequences from previous owners of your property. Make sure you have your peace of mind by insuring yourself and your home.

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