You know you need car insurance, health insurance, and even life insurance, but have you ever considered title insurance? Until you buy your home, title insurance may not even enter your mind, but as you approach the landmark of homeownership, title insurance definitely needs to become a priority.
What is Title Insurance?
First of all, a title to a home is the evidence that the owner lawfully possesses that property and can sell it off. Title insurance is essentially an insurance policy that protects you against any property loss or damage you could potentially experience on your home due to liens, encumbrances, or defects in the title. While standard insurances like car, life, and health insurance protect against future events and is paid monthly or annually, title insurance protects against events that occurred in the past that you may not know about. It’s paid in a one-time premium at the close of your home’s escrow. Read more