Buying a home is a big decision, and it’s important to understand all of the costs involved. One cost that you may not be familiar with is title insurance. Title insurance is a type of insurance that protects you from financial loss if there are problems with the title to your property.
What is title insurance?
Title insurance is an insurance policy that protects you from financial loss if there are problems with the title to your property. A title is a legal document that proves you own a piece of property. Title problems can include things like liens, judgments, and unpaid taxes.
What does title insurance cover?
Title insurance covers a wide range of title problems, including:
- Liens: These are claims against your property that can be used to force a sale to pay off a debt.
- Judgments: These are court orders that require you to pay money to someone else.
- Unpaid taxes: If you don’t pay your property taxes, the government can put a lien on your property.
- Forgery: If someone forges your signature on a document, they could claim ownership of your property.
- Fraud: If someone defrauds you into selling your property, you could lose your investment.
How much does title insurance cost?
The cost of title insurance varies depending on the value of your property and the type of policy you purchase. However, it is typically a one-time cost that is paid at closing.
Is title insurance required?
Title insurance is not required by law, but it is highly recommended. It can protect you from financial loss if there are problems with the title to your property.
When should I get title insurance?
You should get title insurance when you purchase a property. This will protect you from any title problems that may have existed before you bought the property.
How long does title insurance coverage last?
Title insurance coverage lasts as long as you own the property.
What are some other things to consider when buying title insurance?
When you are shopping for title insurance, it is important to compare rates from different companies. You should also make sure that the company you choose is reputable and has a good track record.