As a homeowner, you want to do everything you can to protect your investment. One way to do that is to purchase homeowners title insurance. Title insurance protects you from any financial losses that could occur as a result of problems with your home's title. In this article, we'll take a look at some of the main benefits of having homeowners title insurance.

 

Protecting you from mistakes in the public record

Homeowners title insurance protects you from any mistakes that may exist in the public records. This is especially important if you're buying a home that's been through several owners. Even if the current owner has a clean title, there could be errors in the public records from previous ownerships. If you buy title insurance, you would be protected from having to pay for these errors. This is especially important if you're buying a home that's been through several owners. Even if the current owner has a clean title, there could be errors in the public records from previous ownerships. Homeowners title insurance would protect you from having to pay for these errors. Even if the previous owner made a mistake on their taxes or didn't pay off their mortgage completely, you'll be protected from having to deal with those problems.

Errors in public records can sometimes lead to problems when you try to sell your home or refinance your mortgage. For example, if a previous owner of your home took out a second mortgage on the property but the public record does not reflect this, you could be held responsible for the debt if you try to sell the property. However, if you have homeowners title insurance, the insurer will pay off any debts that are owed on the property, up to the policy limit.

 

Protection against fraud

Another benefit of homeowners title insurance is that it can provide protection against fraud. This is one of the most important benefits of having homeowners title insurance. According to the National Association of Realtors, there was a total of $6.9 billion in victim losses from real estate wire fraud in the United States in 2021 alone. This type of fraud can occur when someone uses false documents to try and sell a property that they do not own. In some cases, the fraudster may even take out a mortgage on the property using the victim's name.

When you purchase a home, the last thing you want to worry about is someone coming along and claiming ownership of the property. This type of fraud happens more often than you might think, but with homeowners title insurance in place, you can rest assured knowing that you're protected against this type of scam.

If someone were to fraudulently transfer ownership of your property to another person, title insurance would cover the costs associated with correcting the error and restoring your rightful ownership. You will also be protected against any losses that you may incur as a result of this type of fraud.

Many also get force placed insurance coverage in these cases because the bank wants to protect from these types of frauds. This type of insurance is added when the regular policy does not cover all scenarios and may even add coverage for other risks.

 

Protection against lawsuits

Homeowners title insurance protects you from lawsuits that might arise from problems with your home's title. This type of insurance can help you avoid costly legal fees and defend yourself in court if necessary.

If someone sues you claiming ownership of your home, or alleging that you have not paid for the property, your title insurance policy will pay for your defense. The policy will also pay any judgments against you up to the policy limit, as well as any costs incurred in appealing a judgment.

Homeowners title insurance also provides peace of mind knowing that you're protected against potential legal issues that could come up down the road. This type of insurance is an important part of owning a home, and it's something that every homeowner should have.

Protection from outstanding liens or encumbrances

Homeowners title insurance protects you from any losses arising from outstanding liens or encumbrances against your property that you were unaware of at the time of purchase. This is one of the main benefits of having homeowners title insurance. This type of insurance is particularly important if you are purchasing a home that has been previously owned, as there may be unpaid debts or other liabilities associated with the property that you are not aware of. Without homeowners title insurance, you could be held responsible for these debts, which could potentially lead to the loss of your home. Having homeowners title insurance protects you from this financial burden.

 

 

All in all, there are many good reasons to purchase homeowners title insurance. If you own a home, it's something you should definitely consider. While there are many benefits to having homeowners title insurance, it's important to remember that this type of policy does have its limits. Be sure to read the fine print of your policy so that you understand what is and is not covered. This way, you can be sure that you're getting the coverage you need.