Are you currently buying or selling a home? Is this your first time buying or selling a home? If so, you should probably consider owner’s title insurance. There are a lot of questions people have regarding this insurance policy, but among the greatest is, “Do I really need this?” This is a completely reasonable question. In Tennessee, you are not legally required to have it, and no one wants to pay for something unnecessary.
What Does Owner’s Title Insurance Do?
At its most basic level, owner’s title insurance protects a property owner from the consequences of a claim on the title of the property. Most people assume this protects you from someone saying, “Hey, this is my house!” Although that is true, it’s not the primary reason. This would seem rather silly because this is such an uncommon and strange occurrence. A claim would likely appear in a different form. Most claims are almost completely out of the purchaser’s control.
The Need Behind Insurance
For example, human error is an ever-present risk. Of course, businesses strive to do their best, but we are human and we make mistakes. From the surveyor’s measurements of the property to the title search to the recording of liens, there is room for mistakes. And of course, there is always a possibility of fraud. Has someone intentionally not conveyed their marital interest? Is someone using fake IDs? Subject to certain limitations, owner’s title insurance protects homeowners from these types of risks.
It is also important because of the monetary protections. If there is a title issue, you will probably not be able to sell your property until you resolve the issue. If you do not have title insurance, you will have to resolve that problem out-of-pocket.
Keep in mind that even though your lender has a lender’s title insurance policy at closing, that does not automatically cover you. A lender’s policy only covers the lender.
Tressler & Associates Can Help You Get Title Insurance
Owner’s title insurance is a one-time payment at closing and one of the cheapest types of insurance you will find. Because of the broad protection that it supplies, we recommend all property owners obtain owner’s title insurance.