We secure various types of insurance for many reasons, but most insurance policies protect us from incidents that may occur in the future. Title insurance is different. Be it owner’s title insurance or lender’s title insurance, these policies protect you from things that have already occurred.
When you buy your home, the seller will sign a Deed conveying the property to you. The Deed is proof that you are the legal owner of your property and have the right to sell. So…why do you need title insurance if you own the property?
Owner’s title insurance is a one-time premium that protects what is most likely your biggest investment from issues, defects, or challenges to ownership. Highland Title + Escrow is persistent and committed to reviewing and clearing your title search. However, the benefits of title insurance save you from claims that could come months or years down the road.
So what are some of the issues we’re talking about?
- Liens: If any previous owners leave bills unpaid to anyone in connection with the property, it could become your responsibility to pay those bills.
- Easements: Properties have easements that give others the right to use that property for specific purposes. For example, there may be a utility easement for a power company to access an electrical pole on your property. Even as an owner, you can’t interfere with this easement.
- Unknown Heirs: When property is left to heirs, it may be difficult to find them so the title can be transferred. As the years pass, the property may be sold without contacting said heir, and they could resurface to claim what is theirs.
Lender’s title insurance is for your mortgage company and usually needed before you can secure a loan. For your lender, this policy protects their investment should something come against or void your title.
Above all, protection is the biggest benefit of title insurance…protection from the points above and so much more. With it’s one-time fee, it protects you throughout your ownership of your home, and it also provides security for your heirs. If any matters arise, your policy could also help with attorney fees and expenses.
Highland Title + Escrow’s team of professionals focuses on each individual transaction and recognizes that none are exactly the same. Check out our brochure for an overview of our approach to your closing. We work together to provide a smooth settlement while keeping you in the loop during the entire process.
Contact us to learn more at (703) 723-3300, or by clicking here.