Homeowners and individuals in the real estate industry have often heard of title insurance, but many do not know too much about what it entails. This safety net is a useful tool that comes into play when buying a new property and is worth being more aware of. Here’s a closer look at title insurance and common questions that people have about it. 

What Is Title Insurance?

Owners Title insurance is a form of insurance which protects against the possibility that there is any ownership dispute related to the property. Purchasing it may cover the payee if there is any related lawsuit or contention. Typically, owners title insurance is offered when land is acquired. It can be bought by the buyer to protect themselves. When a mortgage is involved, a lender may insist that lenders title insurance be included in any sale.  Lenders title insurance does not protect the Buyer. In Ohio, the standard is generally that the buyer is responsible for the cost of both. 

Why Is It Beneficial?

Title insurance tends to cover any liens on the property that are not currently known, heirs to the property who turn up later on, mistakes in the public records and numerous other risks.  It also covers fraud — for example, if someone who doesn’t own the land sells you the property.  

How Does It Work? 

After a research period that examines the property and its associated records (conducted by the title company), the Buyer will typically be offered owners title insurance and if coverage is desired, the one time premium is paid at closing and covers the Buyer for as long as they own the property.  In Ohio, pricing is governed by the Department of Insurance and based on the purchase price for owners title insurance and on the loan amount for lenders title insurance.  There is a price break if purchased simultaneously.  Two types of owners title insurance are available, ask the professionals at All Points Title & Closing, Inc., to discover which coverage is best for you, though it will be more or less expensive depending on which coverage you choose.

If you think you could benefit from title insurance, don’t hesitate to reach out to a trusted title office like All Points Title & Closing in Hamilton, OH. In business since 1986, the title agency will help you minimize liabilities and hold onto your home for the long-term. To schedule an initial consultation, call (513) 863-7600. Learn more about the company by visiting their website.