Although most types of insurance protect policyholders from future events, title insurance protects homebuyers from past issues. It insures them against claims of fraud from defects relating to a title, the legal document stating who owns a property.

4 Commonly Asked Title Insurance Questions

When do you need it?

Prospective homebuyers purchase title insurance when they’re about to close on a real estate purchase. Your insurer will perform a title search before the closing to rule out the possibility that a lawsuit could call your right of ownership into question.

How do you acquire it?

The closing agent or attorney usually initiates the process of finding a title insurer. If they don’t, however, you may contact an insurer independently. The insurer will perform a thorough search of the property’s history. If any issues are discovered, they’ll disclose them.

What may happen if you don’t purchase it?

Failure to purchase title insurance is risky. A title search can reveal liens against the property, unpaid taxes, easements, restrictions, and other impediments. It’s also possible for fraudsters to attempt to sell a home they don’t legally own. In addition, ownership may be in dispute due to child support, inheritance, or property boundary issues. Without insurance, some or all these legal and financial responsibilities could fall on you.  

How much does it cost?

The cost of a policy depends on the value of the property you’re purchasing. You pay a one-time fee for it, and coverage continues for as long as you own the property. If a previously undetected defect in the title emerges years down the road, your policy will protect you.

If you’re purchasing a home or working with homebuyers and need a trusted title insurance company, turn to Chattanooga Title. Serving the Hamilton County, TN, area, their team has more than 30 years of experience protecting clients’ interests and streamlining the closing process. Find out more about their services online, or call (423) 756-3057 to speak with an associate.