Title Insurance Basics

What You Need to Know About Title Insurance

While most people think of insurance as one of the most boring parts of the home buying process, it does not have to be. A title insurance policy is the best way to give you peace of mind when buying a home.

When you “take title” of a home, it means that you are now the legal owner of the property. During the closing process, a title search will be required by your lender to make sure that there are no problems with the property. You will also need to invest in a title insurance policy that will provide coverage for any potential problems with the title.

There are many problems that can show up during a title search, including liens for work that was never paid for or unpaid property taxes, or even simple clerical problems with the documents. The title insurance policy will cover any costs if there is an issue with the title of the house, as well as any research that needs to be done on the property. The insurance that is provided by your lender will not provide coverage if the insurance company loses a legal battle over the title of the property.

There are two basics types of title insurance that are available when you are buying a house: basic or enhanced owner’s title insurance. Enhanced insurance will provide extra coverage for specific situations, such as boundary disputes or mechanic’s liens. Title insurance only has one premium that is paid for the entire year. When looking for the right policy, make sure to shop around to ensure that you get the right amount of coverage at the right price.

For all of your real estate needs when buying a home and to ensure that you are covered in any situation, contact Cary Amo, your Lafayette Realtor.

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