It’s true.
Many new homeowners think that the title insurance their lending institution insists they buy to close on a home protects the homeowner.
That assumption is completely false.
Your lending institution does require you to carry title insurance, but it is to protect the lender, not the borrower. Called lender’s title insurance, it protects the bank should any claims arise against the property.
Quite simply, banks want to protect their investment. That’s why it is not an optional closing cost for the buyer. What is optional is the buyer’s choice to buy homeowner title insurance.
Quite simply, banks want to protect their investment. That’s why it is not an optional closing cost for the buyer. What is optional is the buyer’s choice to buy homeowner title insurance.
What Does Homeowner Title Insurance Protect Against?
Homeowner title insurance protects you, the homeowner, against unknown defects that could cause financial loss, even lose your home.
Here at Lilly Title & Settlement, we do a thorough property title search using the latest technology combined with experienced title searchers.
However, not all activity shows up in a property title search. That’s why title insurance for your home is so important. It protects against known and unknown issues.
Homeowner title insurance protects you, the homeowner, against unknown defects that could cause financial loss, even lose your home.
Here at Lilly Title & Settlement, we do a thorough property title search using the latest technology combined with experienced title searchers.
However, not all activity shows up in a property title search. That’s why title insurance for your home is so important. It protects against known and unknown issues.
What are Some of the Common Homeowner Risks?
As we’ve said, homeowner title insurance protects you against future loss if a claim is made against your property. So what are these possible claims?
For example:
Liens against your property—A lien, also known as a security for payment of an obligation, can include judgment liens for unpaid court judgments, mortgage liens, federal, state, and local liens for failure to pay real estate tax assessments. Additionally, it can include a mechanic’s lien to recover payment for property improvements and liens for child support.
Building or use restrictions—This includes deeds, agreements, and recorded plats.
Claims—These can arise from bankruptcy.
Easements—Easements that have arisen or been created through use or adverse conditions such as rights acquired by neighbors because of a fence encroachment or rights of way for utilities.
Deeds—Falsified or forged deeds or documents arising from fraud-related issues.
Encroachments—For example, if a neighbor builds something that extends or overhangs onto your property.
Ownership disputes—These can include disputes such as an unknown heir.
These are just a few of the possibilities that title insurance for homeowners protects. There are many more. To see a list of what we cover, click here.
Buying a home is the biggest investment you’ll make in your lifetime. Protect that invest with homeowner title insurance!
If you’d like to learn more, please call or stop by Lilly Title & Settlement in Staunton, VA. We would be happy to help!
For example:
Liens against your property—A lien, also known as a security for payment of an obligation, can include judgment liens for unpaid court judgments, mortgage liens, federal, state, and local liens for failure to pay real estate tax assessments. Additionally, it can include a mechanic’s lien to recover payment for property improvements and liens for child support.
Building or use restrictions—This includes deeds, agreements, and recorded plats.
Claims—These can arise from bankruptcy.
Easements—Easements that have arisen or been created through use or adverse conditions such as rights acquired by neighbors because of a fence encroachment or rights of way for utilities.
Deeds—Falsified or forged deeds or documents arising from fraud-related issues.
Encroachments—For example, if a neighbor builds something that extends or overhangs onto your property.
Ownership disputes—These can include disputes such as an unknown heir.
These are just a few of the possibilities that title insurance for homeowners protects. There are many more. To see a list of what we cover, click here.
Buying a home is the biggest investment you’ll make in your lifetime. Protect that invest with homeowner title insurance!
If you’d like to learn more, please call or stop by Lilly Title & Settlement in Staunton, VA. We would be happy to help!
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