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March 24, 2022


No one will dispute that real estate closing costs take a chunk of the house buying budget! That’s why one of the places buyers look to reduce costs is by passing on homeowners’ title insurance. 

It’s a risky business.

Banks require the buyer to buy a lender’s title insurance to cover the bank’s loan investment. But no provision is made for the buyer to cover their investment. That’s where homeowner’s title insurance comes in. 

A policy on the deed of your home, this one-time expense protects you from anyone who challenges your ownership because of an event with the previous owner. 

If you don’t have homeowner’s title insurance, you are not protected from many common misdeeds. However, the bank’s policy will protect them…and you paid for it! Think forgery, fraud, lost wills, mistakes in descriptions, illegal trusts, undisclosed or missing heirs, etc.

Benefits of Homeowner’s Title Insurance

Because the most significant investment of their lifetime is buying a home for many people, it makes sense to protect such a valuable purchase. You’re protected from future losses with homeowner’s title insurance if a claim is made against your property. Unlike car or health insurance, the premium is a one-time payment that protects you as long as you own the home. Homeowner’s title insurance protects you from what isn’t legally recorded by law. It gives you peace of mind! Additionally, if you decide to sell your home, it can protect you from financial loss for covered risks. In most cases, it ensures that your mortgage is the only lien against the property. Lenders understand the tremendous value of this insurance. It’s why they have buyers purchase it.

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