Why Title Insurance Matters When Buying a Home

When purchasing a home, most buyers are focused on things like location, price, and mortgage rates. However, there’s another crucial element of the transaction that often gets overlooked but can protect your biggest investment: title insurance.

Title insurance safeguards homeowners against potential legal and financial risks tied to the ownership history of a property. While many assume a title search eliminates these risks, the reality is that even the most thorough search can miss issues lurking in the property’s past. Title insurance ensures you’re protected if those problems arise later.

Common Risks Covered by Title Insurance

Here are some of the many risks that title insurance can protect you from:

• Ownership disputes: Someone else may claim they own an interest in your land.
  
  

• Unresolved inheritance issues: Missing heirs or unprobated wills can create complications.
  
  

• Public record errors: Mistakes in county or municipal records can cause confusion or challenges to your ownership.
  
  

• Forgery and fraud: Forged deeds, falsified mortgage releases, or impersonation of the property owner can all threaten your title.
  
  

• Improperly executed documents: Instruments signed with expired or fabricated powers of attorney, or by individuals legally incompetent or underage, may lead to disputes.
  
  

• Hidden encumbrances: Easements, leases, contracts, or undisclosed liens may affect your ability to fully use your property.
  
  

• Access issues: Lack of legal right of access to and from the property can cause major limitations.
  
  

• Errors in foreclosure proceedings: If foreclosure requirements weren’t met properly, the transfer of title may be challenged.
  
  

Why Title Insurance Is Worth It

Without title insurance, a homeowner could be left facing costly legal battles to defend their property rights. Even if an issue surfaces years after you’ve purchased your home, title insurance provides financial protection and peace of mind, covering legal expenses and safeguarding your ownership rights.

Buying a home is one of the largest investments you’ll ever make, and ensuring that investment is protected is essential. Title insurance doesn’t just cover clerical errors—it shields you from fraud, disputes, and unforeseen claims that could threaten your ownership. Before closing on your home, talk with your real estate professional about securing title insurance. It’s a small step that provides invaluable long-term protection.