Investing in a home or business can be a significant financial decision. If you’ve been thinking about buying property, you have likely heard of title insurance. However, you might not know precisely what it is. This tool provides real estate owners with the necessary protection to guard their investment, so it’s essential to get educated about it. Here’s a detailed guide about title insurance and how it can benefit you.

What Is Title Insurance?

Title insurance is peace of mind.  It is a type of insurance that protects the policyholder against potential defects that may occur with regard to the title or ownership to a property.  

A Lender may require you to obtain and pay for a Lenders Title Insurance Policy as part of your mortgage closing costs, however, this type of title insurance only protects the Lender.

How Does It Work?

A title company will first search to discover ownership title on the property to ensure that the title chain appears to be correct and that there are no mortgages, liens or claims against that ownership.  The buyer will be offered Owners Title Insurance. If the Buyer opts for the Owners Title Insurance, they will pay a one-time premium at closing and will be covered for as long as they own their home. 

Why Is It Necessary?

Owners Title insurance, when purchased, protects the Homeowner against potential defects such as: forgery, fraudulent conveyance, improper entities conveying title in the title chain, undisclosed or improperly indexed liens, mortgages or other documents which effect ownership; as well as issues with bankruptcy, foreclosure, divorces and estates in the chain of title, just to name a few.

That one-time premium that is paid at closing and protects the Homeowner for as long as they own the property is not a bad investment when you consider it is peace of mind for your property purchase.

If you have additional questions about title insurance, turn to the professionals at All Points Title & Closing in Hamilton, OH. The title agency has been helping individuals reduce their liabilities and seal the deal on their dream home for 34 years. They realize how stressful house closing can be and will help you select the proper insurance for your needs. If you would like to learn more information about their services, call (513) 863-7600 today or visit their website.