Title Insurance: Why You Need It & How It Protects Your Investment
What Is Title Insurance & Why Does It Matter?
When you buy a home, you expect to receive a clear and undisputed title. But what if there’s an issue with the property’s ownership history? That’s where title insurance comes in—it protects you from unexpected claims, legal disputes, or fraud related to the property’s ownership.
🔹 Title insurance ensures that your ownership is legally sound and protects against unforeseen claims.
Title issues can arise from:
✔️ Clerical Errors – Mistakes in public records
✔️ Unknown Heirs – A long-lost relative claiming rights to the property
✔️ Unpaid Liens – Outstanding debts from previous owners
✔️ Fraud & Forgery – False deeds or identity theft
Without title insurance, you could be responsible for resolving these issues—costing you time, money, and even your home.
Lender’s Title Insurance vs. Owner’s Title Insurance
Many homebuyers are surprised to learn there are two types of title insurance:
🔹 Lender’s Title Insurance (Required)
• Protects the lender’s financial interest in the home.
• Covers them against claims that could invalidate their mortgage lien.
• Does NOT protect you, the homeowner.
🔹 Owner’s Title Insurance (Optional but Highly Recommended)
• Protects your financial interest in the home.
• Covers legal fees and financial losses if ownership is challenged.
• Provides lifetime coverage as long as you own the home.
⚠️ Warning: Your lender’s policy protects them, NOT you! If a title dispute arises and you don’t have an owner’s policy, you could be on the hook for legal fees and potential financial loss.
How Title Insurance Protects Against Claims
Even after a thorough title search, hidden issues can emerge. Here’s how title insurance protects you:
✅ Fraud Protection – Covers cases where someone fraudulently sells your home using forged documents.
✅ Unknown Heirs – Prevents long-lost relatives of previous owners from claiming rights to your property.
✅ Unpaid Liens – Shields you from old debts that were attached to the property before your purchase.
✅ Errors in Public Records – Fixes problems caused by mistakes in old property records.
Real-Life Example: I once had a client who bought a home, only to discover months later that a prior owner’s heir had surfaced, claiming rights to the property. Fortunately, they had owner’s title insurance, and the issue was resolved without them paying a dime. Had they skipped the policy, they could have faced a costly legal battle or even lost the home.
Why You Should Get Owner’s Title Insurance
✔️ One-Time Cost, Lifetime Protection – Unlike other types of insurance, you pay for title insurance once at closing, and it protects you for as long as you own the home.
✔️ Covers Legal Fees & Losses – If a claim arises, your title insurance company will handle it, covering legal costs and potential financial losses.
✔️ Peace of Mind – Sleep easy knowing your biggest investment is protected from unexpected claims.
Final Thoughts
When buying a home, lender’s title insurance is required, but an owner’s policy is your safeguard against financial loss, fraud, and legal battles. Don’t take the risk—protect your investment from the start.
📞 Call or text me at 843-999-6565
📧 Email me at trobusto@gmail.com
I’m here to guide you through the home-buying process and ensure your investment is protected!
#TonyRobusto #RealtyOneGroup #MyrtleBeachHomesForSale #TitleInsurance #ProtectYourHome #SmartHomeBuying