Common Title Insurance Myths DEBUNKED Common Title Insurance Myths DEBUNKED

Common Title Insurance Myths DEBUNKED

Jul 12 2019

Misconceptions regarding Title Insurance are quite common among homebuyers. These misconceptions have evolved into myths and spread across the country, and most people have come to believe they are true.

To help you understand why you need Title Insurance, in this article, we will debunk some of the most popular myths about how Title Insurance works and whether you actually need to obtain it.

“Owner’s Title Insurance is Not Necessary”

Many homebuyers in Florida wonder why they should spend money on buying a separate Title Insurance policy when they have already obtained a policy for their lenders. The answer is quite simple; a Lender’s Title Insurance policy only protects the lender from losing their investment if hidden issues with the property emerge after closing. If you do not have an Owner’s Title Insurance policy, you may find yourself having to spend money to defend your right to own and use the property you purchased.

While it is true that purchasing an Owner’s Title Insurance policy is not required by law, you definitely need it to protect yourself and your property against problems that may arise in the near future.

“A Title Insurance Policy Offers Minimal Protection”

When it comes to the amount of coverage provided by a Title Insurance policy, it will always be clearly stated in the terms of the policy. There are many title companies in Florida, and they provide different types of coverage. Title Insurance policies generally provide coverage for pre-existing issues with a property, including:

  • Deed errors,
  • Forgery on vital documents,
  • Undisclosed heirs of previous owners,
  • Unknown liens,
  • Adverse possession,
  • Unknown easements, and
  • Boundary/survey disputes.

“Title Insurance Is Too Expensive. IT IS NOT WORTH IT!”

This is simply not true.

As a homebuyer, the Title Insurance policy you need to purchase only accounts for a small percentage of the final purchase price of your new home; it is a regulated fee. In other words, the price of an Owner’s Title Insurance policy is very small compared to the value of the property you are purchasing.

When it comes to whether Title Insurance is worth the cost, the answer is a loud YES. The biggest advantage of Title Insurance is that you only need to pay for it once and it will protect you for as long as you own the property you purchased. Even after you are gone, your Title Insurance policy will protect your heirs for as long as they own the property. In other words, you are paying a very small amount of money today to protect yourself from potential title issues that might emerge tomorrow.

No matter how much you end up paying for your Title Insurance policy, it is definitely worth more than it costs. Title Insurance is one of the wisest investments you can make.

Invest now and be protected forever.

“Home Buyers Do Not Get to Choose their Title Insurance Company”

This is simply ridiculous, yet many people believe it is true.

As a homebuyer, you can choose any Title Company you want, and you should not believe anyone who tells you otherwise. It is your right, under the Real Estate Settlement Procedures Act, to hire the Title Company of your choice to handle your real estate closing, which allows you to use reliable title companies like Marina Title and benefit from an engaging, professional, and memorable closing experience.

Do you have further questions about Title insurance or the home buying process? Call us today at (305) 901-5628 for an initial consultation or send us an email to to get started.

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