Title insurance explained
If you want to protect yourself from unanticipated or unforeseen claims, historical mistakes, and other events that could cause you to lose your home, getting a title insurance might put your mind at ease. Learn more about title insurance and how it can protect you and your Smith Mountain Lake property here.
What makes title insurance important?
Obtaining a title insurance is not a requirement in order to become an homeowner, but it can help a lot especially if you want your bases covered. There might come a day when you’ll need something to back up your title insurance claim, but let’s pray you’ll never get to experience that.
So, what makes title insurance important?
A title insurance basically protects you from being forcibly removed from your property should an event that questions your ownership arises. It’s a pretty dire situation, and we pray you’ll never have to make a title insurance claim, but better be ready just in case, right?
The title insurance is usually purchased upon the closing of the transaction. It’s a one-time cost — you don’t need to pay for it monthly or annually. The question of where you’ll purchase your title insurance is another matter; your preferred lender can refer a title insurer, or you can shop on your own.
What happens if a claim is made?
If the time comes that a claim to your property is made, your title insurer will check its authenticity on your behalf and help you settle the dispute. This may or may not include having to pay your remaining mortgage balance in full and having to deal with other related expenses.
Here are some examples of claims that can be made against your title:
- The sale of your home wasn’t properly recorded in the public record
- The home loan of the previous owner (the seller) wasn’t properly paid off or recorded as "satisfied"
- The discovery of a will
- Forged notarizations
A title search will be done by the insurer to avoid such issues. If ever such problems were identified, these errors will be covered by your title insurance policy.