A home is a major investment, so you’ll want to protect your purchase. Whether you're a first-time homebuyer or on your third property, you always need to purchase owner's title insurance. Without it, you put your home and your pocketbook at risk. 

A Guide to Owner's Title Insurance

What Is It?

Title insurance is designed to protect against unforeseen property and financial claims on a home. Typically, there are two policies purchased when buying property — lenders, and owners. While the lender's plan protects the mortgage, owner's title insurance covers your risks.

When you buy a home, the deed verifies your ownership. However, if the document has been forged by previous owners or there's an undisclosed debt attached to it, then you face serious legal hurdles and out-of-pocket costs. Your title insurance provides protection for such situations in the form of financial assistance.

Why Is It Important?

One of the biggest concerns when buying a property is ownership claims. During the property title search, the abstractor combs through every public record associated with the home to identify potential issues. But there's still a risk of ownership claims as a result of unlawful name removals and inheritance declarations. If the court determines the other party does, in fact, have a rightful stake, your owner's title insurance covers any money you've lost on the purchase, including down payment and closing costs.

There's also a risk of unpaid debts. If a lien has been placed on a property — even if it occurred 50 years ago, then you become responsible for paying the debt upon taking ownership. Without title insurance, you have to face the expense entirely on your own.
 

If you're ready to buy a home, keep yourself and property protected with quality owner's title insurance coverage from First Financial Title Agency of Minnesota. Since 1989, the full-service closing title company has helped residential and commercial clients throughout Dakota County traverse the real estate buying process with ease. Learn more about their title and escrow services online, or call (952) 831-5010 to inquire about your title coverage options.