The market for title insurance is worth over $53627.26 million. It’s one of the more important but neglected forms of insurance. Most homeowners don’t know what it covers, and too many might not have it.
You may also be scratching your head and asking, “what is title insurance?” The more you learn about it, the more important you’ll realize it is.
Read on to learn five things you should know about title insurance.
1. It’s a One-Time Purchase
Any other type of insurance guide will tell you that you’ll have to pay a monthly bill. You could have to pay approximately:
- $54 per month for liability car insurance
- $452 for marketplace health insurance or $1,779 per month per family
- $240 per month for life insurance
Title insurance is included in the final closing cost of a real estate purchase. That makes it a one-time deal, and you won’t have to worry about another monthly bill.
2. You Can Choose Your Own Company
Every lender will have their favorite title insurance company and try to encourage you to go with them.
If you need to close quickly, you can go with their advice. If not, research and compare your options to get the best and most affordable title insurance company.
3. It Covers Current and Future Construction
Real estate, including undeveloped land, almost always had at least one previous owner. These changes aren’t always recorded and can change the visual and legal property lines. They also create:
- Liens from contractors who weren’t paid
- Falsified or forged seeds or documents
- Encroachments
- Ownership disputes
One of the most important title insurance benefits is that it protects you from these issues before you’ve begun working on your land. What’s even better is that it also protects future construction.
4. You Can Buy It at Any Time
If you purchase property through a lender, they’ll require title insurance as a form of protection. If you buy it on your own, you can do so anytime.
You can also get it for a property you just bought or for one you already own. It’s an important way to protect yourself from title deficits.
5. You’ll Need a Lawyer
Researching a property on your own is time-consuming and expensive. It’s easy to miss an important title deficit that could keep you from getting insurance.
A real estate lawyer specializes in all areas of real estate law. They can:
- Identify and clear loans and leans
- Solve property deed restrictions
- Set title insurance
- Prepare buyer statements
- Help with closing and hosting official sales documents
There are also certain states where you’re required by law to find one before closing. They include:
- North Carolina
- South Carolina
- Georgia
- Alabama
- Connecticut
- New York
- West Virginia
If you’re in any of the other 50 states, getting title insurance without a real estate lawyer is like fixing a pipe without a plumber. You can try, but you’ll probably get wet.
Where to Find Help with Title Insurance
Title insurance protects you from title issues on your land, such as liens, forged documents, or ownership disputes. It extends to new and future construction.
Unlike other forms of insurance, it’s a one-time purchase that doesn’t come with a monthly bill. You can get it from any reputable company at any time, but a lawyer can help you get the best results.
Monstra & Grater has experience with all areas of estate law. Contact us for help with your title today.