You may understand the value of homeowner’s insurance. But have you ever considered insuring your home’s title? Owner’s title insurance can be a valuable form of financial protection.
With owner’s title insurance, you are insuring against legal claims that may have existed before you bought the property. If the title search during the property transfer fails to uncover these claims, the person or entity could sue the new titleholder.
This post will explain the importance of having owner’s title insurance.
What if the property has unreported liens against it? The lienholder might sue you after you purchase the property. It could be a lien for unpaid taxes or a mechanic’s lien. In any event, the claimant is trying to exercise their legal right to the property. With title insurance, you have a measure of financial protection. In many cases, the coverage will be for the entire purchase price.
The vast majority of real estate transactions are legitimate and by the book. That said, there are people out there who may try to commit fraud. They might forge a signature or alter the title in some way. If this occurs, it can affect your legal right to the property. Having title insurance can be a way to guard against losses that may result from fraud.
The seller’s claim to ownership might not be as clear and clean as it first appears. They might be the only name on the deed, but there could be other people with a claim. It could be a spouse or former spouse. In some cases, it might be an heir. Either way, the sale might be void if there is a legitimate rival claim. If the claimant sues, it could be costly.
One of the best things about owner’s title insurance is its long-term protection. Most policies will remain active as long as the policyholder has an interest in the property. Some policies will even transfer to your heirs if you list them on the policy.
Defending against these claims can be expensive. Since the insurer has an interest, they will cover the attorney fees in most cases. That means you will have a strong defense from an experienced legal team. The insurer will usually coordinate most of the defense for you. That means they pay for legal expenses and cover the losses under the policy.
Are you interested in title insurance in Tennessee? Click here to contact the Title Group of Tennessee. We offer owner’s and lender’s title insurance and a range of other title services.
Thanks for visiting!