What Does Title Insurance Protect You From?

Published On: February 29, 2016|Categories: Blog|

what does title insurance protect you from tampa bay homes for sale

Many people are under the mistaken assumption that the title, loan, transfer documents and homeowners insurance are enough to keep their investments safe when the purchase a home.

But what happens if a financial burden, such as a lien, is imposed on your property long before you buy it and you don’t know it’s there?

That’s when title insurance comes in handy.

What Is Title Insurance?

Title insurance is a type of insurance an owner can purchase in order to protect him- or herself from defects in the title. Typically, you can purchase it for a one-time fee at closing; it lasts as long as you are you’re in years have an interest in the property.

Owner’s title insurance is different from the title insurance the bank makes you purchase when you buy your home. Lender’s title insurance protects only the lender – not you.

What Can Title Insurance Protect You From?

Owner’s title insurance can protect you from a number of risks and hidden defects, including:

  • Errors in public records
  • Judgments or liens against the property or the seller, which become the new owner’s responsibility after closing
  • Claims to ownership from other parties, such as missing heirs and ex-spouses
  • Invalid deeds or other transfers

Typically, this type of insurance policy can protect you against all of these defects, as well as a few others. Because the insurance agency is responsible for ensuring that the title is clear before you make your purchase, they often pay legal fees and claims arising from errors that could ordinarily cost you ownership of your home.

Are You Buying a Home in Tampa Bay?

If you are purchasing a home in Hillsborough, Pasco or Pinellas County, we’d love to help you find one that’s just right for your needs.

Call us at 727-584-8480 or 813-961-6000. If it’s easier, you can also get in touch with us online to tell us what you want from your next home.