7 Reasons Why You Need Owner’s Title Insurance

7 Reasons Why You Need Owner’s Title Insurance

What is Owner’s Title Insurance?

Owner’s Title Insurance is a tremendously valuable yet often misunderstood insurance policy that protects the rights of a homebuyer to his or her property.

Buying a home can be an exciting and emotional time for many people. However, it can turn into a big headache surprisingly quickly if you are not protected by a sound Owner’s Title Insurance policy.

Consider the following example:

You have recently purchased a new home directly from a builder, who failed to pay the roofer, who then filed a lien against the property. You would not find out about this issue until the claim is filed and you are held responsible for the builder’s debt.

Without Title Insurance, you would be responsible for paying this existing debt out of your pocket, with money you could be using to purchase something nice for your new home, like new furniture or appliances, for example.

A Title Insurance policy protects you from both legal and financial responsibilities.

Read on to learn 7 reasons why you, as a homebuyer, need Owner’s Title Insurance.

1 – Owner’s Title Insurance Protects Your Investment

Buying a new home is probably the single largest investment most people make in their life. Generally, you insure everything that is valuable to you—your life, your personal property, your car, your health, your pets, your jewelry, etc.—so it makes perfect sense to insure the largest investment you will ever make. For a one-time fee, Owner’s Title Insurance will protect your rights to your home for as long as you (or your heirs, when you are no longer around) own the property.

2 – Owner’s Title Insurance Reduces Your Risk

If you are purchasing a home, many hidden issues may surface once the transaction is completed. An Owner’s Title Insurance policy will protect you from legal discrepancies with the title to your property.

Most people are never aware of the many hidden problems that may come when buying a house until they find themselves face to face with them, having nothing with which to protect themselves.

Here are just some of the many situations in which having Owner’s Title Insurance is crucial:

Unanticipated title claims, such as:

• Forgery (making a false document). For example, the seller misrepresents his or her identity.
• Fraud  (deception to achieve gain illegally). For example, someone steals a homeowner’s identity and either sells that person’s house without his or her knowledge or consent, or takes out a second mortgage on the house and walks away with the money.
• Clerical Error (inconsistent paperwork and historical records). For example, an unexpected discrepancy in the property or fence line causes confusion in regards to ownership rights.

Unexpected title claims, such as:

• Outstanding mortgages and judgments, or liens against the property arising from the seller’s failure to pay the required taxes.
• Pending legal action against the property, which could affect your ownership rights.
• An unknown heir of a previous owner who is claiming ownership of your property.

3 – Owner’s Title Insurance is Worth More than It Costs

In order to obtain an Owner’s Title Insurance policy, you must only pay a one-time fee, which is considerably low relative to the value it provides. A good Title Insurance policy typically costs around 0.5% of the home’s purchase price.

4 – Owner’s Title Insurance Protects Your Heirs

As long as you or your heirs own the home protected by the policy, Owner’s Title Insurance will protect your ownership rights.

5 – Nothing Compares to Owner’s Title Insurance

Home insurance and warranties will only protect the inside of your house. Clearly, obtaining Owner’s Title Insurance is the best option to ensure your family’s property rights stay protected even after you are no longer around.

6 – More than 80% of Homebuyers in America Agree

Each year, more than 80% of America’s homebuyers choose to obtain Owner’s Title Insurance to protect their ownership rights. As you read this article, the other 20% of buyers are probably paying the price of not having acquired a Title Insurance policy.

7 – Owner’s Title Insurance Gives You Peace of Mind

When you obtain Owner’s Title Insurance for a home you are buying, you will be able to rest assured, knowing that you will not be finding yourself stuck with existing debts or legal problems with the property.

If you are considering obtaining an Owner’s Title Insurance policy, Maria Title can help you!

To learn more about our title services, call us today at (305) 901-5628 or send us an email to [email protected] to schedule an initial consultation with one of our Florida title experts.