Why You Need Title Insurance

When you buy a home, you have to buy lots of different types of insurance, such as flood insurance and general homeowner's insurance. One more type of insurance that you will need- one that is all too often overlooked- is title insurance. While it may seem troublesome to have to take out yet ANOTHER insurance policy, title insurance is a smart purchase since it protects your largest and most important investment of all: your home. The benefits to having title insurance are numerous, which is why this important type of insurance is NOT something you should opt out of.


As mentioned, protection is a major benefit of title insurance. See, when you purchase a home, you are also purchasing the right to use the space- the property itself and the land that it's on. However, sometimes, certain unwanted limits and claims by others may be written into your title, limits that you might not know about until it's too late.

Fortunately, it's never "too late" if you have title insurance. Title insurance protects you from any defects that may already exist in your title, and, unlike other insurance where you have to pay a monthly premium, you just pay for title insurance once time.

Protection for Your Heirs

In addition to helping to protect you, the buyer, title insurance also helps protect the heirs of the person who originally took out the title insurance. That one-time premium payment is good for your heirs, providing they possess the title to your property. And, even if they go so far as to sell it by warranty deed, they are still protected.

The company that issued the insurance will take care of any claims made against the title and cover any related expenses as well. In that way, title insurance is really protection for a lifetime...and then some!

Coverage for a Wide Range of Potential Issues

Finally, it's important to understand that title insurance covers a wide range of claims, issues, and problems that could come up with your title. Most basic policies will cover AT LEAST the following instances and issues:

  • Forgery
  • Lack of competency of a party
  • Impersonation
  • Deed not joined in by a necessary party
  • Undisclosed prior mortgage
  • Undisclosed prior lien
  • Undisclosed easement
  • Undisclosed use restriction
  • False or inadequate legal descriptions
  • Improperly recorded deed

Being safe from so many of the things that could go wrong can really ease your mind and help you to enjoy your new home, which is why title insurance is such a smart investment. To learn more, contact a company like TitleSmart.