Insurance policies typically protect you from future losses. For example, health insurance protects you if you become ill in the future, and home insurance protects you from the loss of any damage that occurs after you close on your house. Similarly, title insurance protects you against financial loss due to defects in a title to a property. If you’re considering purchasing or insuring a property, here’s what you need to know.

Why Title Insurance is Important

If you don’t purchase title insurance for a property, you may be assuming the risk for issues you aren’t responsible for. For example, if you purchase a newly constructed home in a subdivision, you may eventually learn that you have a lien on your home because the sub-contractor was never paid. Having title insurance would protect you from the responsibility of the lien. Other types of protection include encumbrances, defects in the title, and ownership.

Some lenders might even require you to have title insurance to protect their assets in case of an issue. This is known as lender’s insurance. However, you should also purchase an owner’s policy so you (as the buyer) are also protected. However, in order to purchase title insurance, you must contract a land surveyor to survey the land you intend to purchase.

What a Land Surveyor Does

Land surveyors establish and update boundary lines. They also uncover additional information that can go against the buyer’s interests. In short, a land surveyor will search for any information showing that the purchase may not be in your best interest. For example, if the land surveyor finds proof of possession by someone other than the seller, your request for title insurance will be denied.

Is Title Insurance Mandatory?

Lender’s insurance is mandatory if your lender requires that you purchase it. However, owner’s title insurance is never mandatory. Title insurance helps protect a small group of people who run into issues with their title after they purchase their homes. Although land surveyors perform thorough inspections to ensure your confidence in your purchase, you might not discover any problems until much later. Therefore, title insurance is a comparatively easy way to protect yourself from surprising and potentially serious consequences.

If you’re looking to purchase property, make sure you have the best team on your side. Flynn & CYR Land Surveying in Berlin, CT, provide subdivision surveys, land surveying, construction surveys and more to protect buyers in Berlin, Kensington, and the surrounding areas. Call them at (860) 828-7886 or schedule a land surveying estimate on their website today.