Many wonder if title insurance is worth the investment. The short answer: yes!

If you’re obtaining a loan, your lender will require you to purchase a title insurance policy to protect their investment in the property. To assure you have similar coverage if discrepancies arise, we strongly recommend you purchase an Owner’s Title Policy as well. Unlike standard insurance that protects you against future damages, title insurance protects you from any defects in the chain of title created in the past.

Once you close on a home, the ownership or “title” is transferred into your name. However, there may be unforeseen legal or financial discrepancies that arise only after the title is transferred. There are two main categories of risks in real estate: hidden hazards that can’t be detected in a title search and human error in indexing information correctly. Hidden hazards include situations like an unknown heir of a previous owner claiming ownership of the property, outstanding mortgages or judgements, forgery, impersonation, etc. Human error, on the other hand, involves clerical mistakes on recorded documents such as the misspelling of names or incorrectly filing the transfer documents. If challenged, the title will be defended without cost to you by placing assets of a corporation behind the title to your home.

The beauty of title insurance is its affordability. Typically, it costs around 0.5% of the homes purchase price. It’s a one-time premium issued at the time of closing and remains in effect as long as you own your home. Dollar-for-dollar, it’s one of the most cost-efficient forms of insurance for homeowners.

Your home is often the single largest investment you will make in your life. Since you insure everything else that’s valuable to you, why not your largest asset as well?