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Title Insurance Help; What Is It and How Does It Work?

Just picture yourself. You buy your new home with your new family and you are all excited about it. It is a very nice house that you and your husband just picked out after spending months trying to find the perfect one. Then, one day you get a call from your real estate agent and he says that there is a current claim on the title of your house and it’s not yours. If you didn’t want this to happen, then you should have talked to your agent about title insurance before you purchased the house. Now, let’s talk about what title insurance is .

What is Title Insurance?

Title insurance just insures that your home will be safe if the past owner, their family, or the rightful heir comes to claim the home or piece of land while you are living there or own it. The last thing you want is some stranger coming into your life and taking away what you have spent most of your life saving up for.

How Does Title Insurance Work?

To ensure that the sellers of the house are really allowed to hand over the home to whoever buys, you can run a title check to make sure that there are no other claims on the property title. You can hire an attorney to do this title search or you can have a licensed abstractor or title company. You can only

go as far back in the history as your state laws allow. If your agent neglected to do their job while doing a title search and you get attacked by title claimers, then you can still be protected. But, even if you have the slightest amount of title insurance, you can still be somewhat protected.

What Does Title Insurance Cover?

You may still be wondering what title insurance covers. It covers the physical property or the rights of the buyer. Well you are right. It covers both! It saves your physical property from going into the hands of someone else and it protects you from losing that property. If your home is in danger of being taken away, then you definitely want protection. When you buy your title insurance, you want to know how much it will be costing you. But, it really depends on how much you paid for your home. If you paid let’s say $300,000 then you would be paying about $3,000 for your insurance each month. It usually costs about 1% of how much you bought your property for.

Don’t let some random person come into your life and take away your land or your dream home. Try to talk to your agent about title insurance so that you know that you and your physical property is in good hands. But make sure your agent does a good job at doing your title search.

Category: Insurance

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