How Title Insurance Protects All Homebuyers

Tuesday, Feb. 28th 2017

Whether you’re purchasing a new or existing home, or refinancing, title insurance protects you against any problems affecting the title to your home.

The Basics

There are two types of title insurance: the owner’s policy and the lender’s policy. The owner’s policy protects your property rights as the homebuyer, whereas the lender’s policy insures the financial investment of the bank or lender. If someone else claims ownership of your property, title insurance typically defends you legally and financially.

Common Risks

Here are some examples of problems with title:

  • Liens against the property that serve as security for the payment of an obligation (e.g. mortgage liens, judgment liens for unpaid court judgments, federal tax liens, state and local liens for failure to pay real estate taxes or assessments, mechanic’s liens to secure payment for property improvements, liens for recovery of child support payments or, as in New York City, for unpaid parking tickets).
  • Easements that have been created by contract or arisen through use or adverse prescription (e.g. rights of way for utilities, rights acquired by neighbors because of a fence encroachment).
  • Building or use restrictions contained in recorded plats, agreements or deeds.
  • Claims arising out of bankruptcy.

These are just some of the many reasons why getting owner’s title insurance is crucial when buying or refinancing a home. It gives you peace of mind that your property rights are protected.

Refinancing?

When you refinance, you are obtaining a new loan, even if you stay with your original lender. Lenders will usually require a new title search and lender’s policy to protect their investment in the property. Fortunately, homeowners don’t need to purchase a new owner’s policy—the one you bought at closing is good for as long as you or your family own the property. However, you may want to contact an ALTA member to update your policy to reflect changes in your life.

Enduring Value

Owner’s title insurance is a low, one-time fee based on the value of your home. For example, the typical owner’s title insurance policy costs an average of 0.5% of a home’s purchase price. With a home being one of the largest investments you’ll ever make, it’s clear why getting owner’s title insurance is such a smart way to give yourself peace of mind.

*This blog offers a brief description of insurance coverages, products and services and is meant for informational purposes only. Actual coverages may vary by state, company or locality. You may not be eligible for all of the insurance products, coverages or services described in this blog. For exact terms, conditions, exclusions, and limitations, please contact a us.


Posted in Education

Latest News

Kansas City Housing Market Statistics – November 2017

Kansas City housing market stats are in for November 2017. We’ve compiled a few of the important stats that reflect market projections. Download, share with your clients and check back every month for an updated infographic. For the full report...

Read More

Testimonials

We truly value our work and take the time to connect with each and every person we work with. Read success stories straight from our clients.

View All Testimonials

apex
aicpa

October Market Report

Data provided by St. Louis Realtors®, Kansas City Regional Association of Realtors®, and Murney Blue Books®. Updated monthly.

1,558

St. Louis area homes sold (single family)

3,056

Kansas City area homes sold

620

Springfield area homes sold

Continental Title Company © All Rights Reserved. Privacy Policy

Site Created by KC Web Specialists, LLC