When purchasing a property, one of the smartest investments you can make is title insurance. While it may not be as well-known as homeowners’ insurance or property taxes, title insurance plays a critical role in protecting your ownership rights long after closing.
What Is Title Insurance?
Title insurance is a policy that protects property owners and lenders from financial loss due to defects in the title to a property. These defects may include unknown liens, errors in public records, undisclosed heirs, forgery, or boundary disputes—issues that could jeopardize your legal ownership or cost you money to resolve.
Unlike other insurance policies that protect against future events, title insurance covers problems from the past that may not be discovered until after you’ve bought the property.
Types of Title Insurance
There are two main types:
- Owner’s Title Insurance
This protects the buyer’s ownership rights. It’s a one-time premium paid at closing and remains in effect as long as you own the property. - Lender’s Title Insurance
Required by most mortgage lenders, this policy protects the lender’s financial interest in the property. It does not cover the buyer.
Why It’s Essential
Even with a thorough title search, not every issue can be uncovered. For example, a forged signature in the chain of ownership or an unknown heir could arise years later and threaten your claim to the property. Title insurance steps in to cover legal fees, settle claims, or reimburse you for losses.
Peace of Mind for Property Owners
Purchasing a home is a major financial investment. Title insurance offers peace of mind by ensuring that your ownership is secure and legally protected. Without it, you could be held responsible for someone else’s past mistakes.
Conclusion
Whether you’re buying your first home or investing in real estate, title insurance is an essential layer of protection. It’s a one-time cost that can save you thousands—and safeguard your property rights for years to come. Always consult with a real estate attorney or title professional to make sure you’re fully covered.
This post was written by a professional at Kearney Law. At Kearney Law, we’re dedicated to delivering personalized legal guidance that puts your needs first. Whether you’re looking for
Personal Injury Attorney Largo FL, a real estate attorney near you, a probate attorney near you, or a title attorney near you, our team is ready to provide the focused representation you deserve. We recognize that every client’s situation is different, which is why we take the time to understand your case and craft strategies that align with your goals. With a commitment to protecting your rights and securing the best possible outcome, Kearney Law offers trusted legal support with the attention and care you won’t find just anywhere.