If you are in the process of purchasing a home, you have likely heard of title insurance. This type of insurance protects the buyer and lender from any issues that may arise with the property's title. While lender's title insurance is typically required by the lender, owner's title insurance is optional. In this blog post, we will explore owner's title insurance in more detail and provide some key insights to help you decide if it's right for you.
What is Owner's Title Insurance?
An owner's title insurance policy is a type of insurance that protects the buyer from any future claims or issues that may arise with the property's title. This includes any liens, easements, or other title defects that may affect the buyer's ownership of the property. While the title search and examination process can help identify potential issues with the title, there are some issues that may not be discovered until after the sale has closed.
Why Do You Need Owner's Title Insurance?
Without an owner's title insurance policy, you could be responsible for any legal fees, court costs, or other expenses that may arise if someone makes a claim on the property's title. These costs can be significant and may even result in the loss of your property. An owner's title insurance policy can provide peace of mind and financial protection in the event of a title issue.
How Does Owner's Title Insurance Work?
An owner's title insurance policy is typically purchased at the time of closing and provides coverage for as long as you own the property. The cost of the policy is typically a one-time fee based on the purchase price of the property. The specific coverage and exclusions can vary depending on the policy, so it's important to carefully review the terms and conditions of any policy you're considering.
While lender's title insurance is typically required by the lender, owner's title insurance is optional. However, purchasing an owner's title insurance policy can provide valuable protection and peace of mind for homebuyers. By covering any potential issues with the property's title, an owner's title insurance policy can help you avoid costly legal fees and protect your investment. If you are in the process of purchasing a home, contact The Law Office of Joseph A. DiPiazza to discuss any questions you may have about this type of policy.