There’s insurance out there for just about everything in our lives.
We use health insurance to help us avoid potential costs incurred due to health problems. We protect our home from large costs with homeowner’s insurance. And, we protect our car with car insurance.
But, what about owner’s title insurance?
When you’re in the process of buying a home, there’s a lot of costs involved. By the end of it, you’ve paid for a lot of expenses and probably want to avoid paying for anything more if you can avoid it.
In this post, we’ll take a closer look at some title insurance basics and cover what you need to know. Before you decline owner’s title insurance coverage, it’s imperative to know what you’re giving up.
There are two types of title insurance, owner’s and lender’s. Title insurance protects against unknown title defects that could cause financial loss.
Lender’s title insurance is what protects a mortgage company when there is a loan on the property. It’s important to note that a lender’s title insurance policy only protects a lender.
Owner’s title insurance is what protects a homeowner from potential losses due to title defects. It is a one-time premium that you pay at closing that protects you as long as you and your heirs own the property.
There are many times where buyers wonder why they need owner’s title insurance. There’s a common misconception that if a title company does their job properly there shouldn’t be any need for owner’s title insurance.
The key thing to remember here is that owner’s title insurance protects you against unknown defects. Even when a title company does their job perfectly, there’s no predicting what potential defects could come to light after closing.
That’s where owner’s title insurance comes in. It protects you against the unknown. If a previous owner committed fraud, you’re protected. If there was an unrecorded lien against a previous owner, you’re protected. It’s there to protect you against what title issues could potentially happen.
Owner’s title insurance protects you against a lot of different things. Here are just a few of the scenarios that it covers:
These are just a few of the ways that owner’s title insurance protects you. To find out more, read 70+ Ways To Lose Your Property.
Title Group of Tennessee is a full-service Knoxville title company. We specialize in Knox, Sevier, Loudon, Blount, Jefferson, and surrounding counties. Title Group of Tennessee is ALTA Best Practices Certified since September 30, 2015.
Are you in the process of buying or selling a home in the Knoxville area? Title Group would love to assist you in any way possible. You can reach us at 865-392-5801 or via email at [email protected].