Do I Need Owner’s Title Insurance for my New Home?
A lot of people these days are asking, “do I need owner’s title insurance, and is it a good idea to just buy it on a whim?” While buying a new home can involve a lot of expenses – from costly renovations, to adjusting to mortgage payments, and even to the repairs and replacement appliances you might have to purchase, title insurance is indispensable. Any expert will agree that the best choice is to research your top picks for title insurance and think carefully before you buy. However, it is no question that, at the end of the day, title insurance is necessary.
An Insurance Policy to Protect Your Investment
When spending more than $300k on a brand new house, most homeowners won’t be very happy to find out that a past owner’s claim on the title is still valid. In that moment, asking, “do I need owner’s title insurance for my home” will become highly relevant. Aside from paying for the title search, the insurance policy protects homeowners from the legal difficulties arising during a title dispute. Many homeowners who never dreamed that this could happen to them have found that forgeries, clerical errors, fraud, unknown heirs and outstanding mortgage payments can lead to a real nightmare when it comes to defending their rights on the title without title insurance.
Owner’s Title Insurance Will Also Cover Your Descendants
Asking, “do I need owner’s title insurance” is one thing, but considering your children and their children is another matter entirely. Not many people know, however, that owner’s title insurance offers valuable protection not only to them, but to their children and any other heirs who would eventually inherit the home. If you have growing children, and are planning to leave them your house in 10-15 years, then this is one benefit that cannot be ignored.
Home Buyers Agree: Title Insurance Is Needed!
Do I need owner’s title insurance? Even though title costs are not mandatory when it comes to owner’s title insurance, most home buyers agree that the recommended choice is to buy it. As statistics will tell you, an impressive number of 80% of all home buyers who have previously purchased at least one home in their lives agree that you can’t run the risk of being without title insurance. Aside from the peace of mind it offers, the protection it provides has saved a surprising number of people from the difficulties and burdens of an unwanted title dispute.
Owner’s Title insurance Is Not Expensive
Most other forms of insurance will require homeowners to pay hefty sums on an annual basis. However, title insurance is very different. In exchange for a one-time flat fee that is quite reasonable, owners can benefit from the legal protection of a dependable insurance company and the foresight of a good title search. Since the fee you have to pay is relative to the value of your home and that of your mortgage, you can expect to pay a much more reasonable amount for a home priced below $200k than for the expensive, million dollar homes that are located in the richer neighborhoods of your city. So it’s clear that, when asking, do I need owner’s title insurance, the only reasonable answer is a resounding “yes!”