Mortgages for buying property mean getting title insurance. But is it safe or ultimately a scam for house owners?
People are often unaware of title insurance or don’t realize its existence until they’re required to get one at the end of the house-buying procedure. It might come as a surprise, but title insurances are must-haves for every property owner, not because it’s compulsory, but immensely beneficial.
Here’s a situation to help you get the gist of title insurance. You might receive a letter from an heir of the previous owners of your property. But instead of panicking, you’re calm and confident because you know you’re safe and not on the wrong side. Buying title insurance offers this peace of mind.
What Is Title Insurance?
Title insurance safeguards the rights and investment of lenders and you (the house owners) when you get sued by people claiming ownership of your property. Title insurance agents observe vital aspects of your property to mitigate elements that may cause hurdles when you’re transferring the ownership title from the seller’s name to your name.
The lender’s title insurance varies from the owner’s title insurance because the former protects the lender’s finances- not yours. So, you must buy the owner’s title insurance to secure your investment against all possible property claims.
So Is Title Insurance A Ripoff or Scam?
NO! Title insurance comes quite in handy when you appear in the court, fighting to justify that the property belongs to you. In addition, having title insurance can cover all the legal costs if you are to hire an attorney to represent and defend your property.
Buying title insurance is equivalent to a long-term asset where you don’t need to pay the premium each year for renewing the policy. In addition, title insurance doesn’t even cause a dent in your savings. You need to make a one-time payment, that’s usually 0.5% to 1% of the value of your home. For example, you’ll pay around $1500 to $3000 for a $300,000 house. That’s immensely wallet-friendly compared to the safety it delivers.
However, there are a few costs that title insurance doesn’t cover. For instance, any issue resulting from your actions, like not paying property tax on time, is not covered in the insurance. Your title insurance doesn’t protect you from instances like the seizure of your property by the government for public purposes.
Contact The Professionals
Title insurance enables you to protect your title as the property owner and keep your investment safe. Although you rarely receive lawsuits, you must still eliminate every factor that may risk your losses when you’re making crucial and long-term investments in property. Therefore, if you’ve decided to consult expert agents in Florida to guide you through the process of getting title insurance, you can reach out to JD Title & Escrow Services LLC.
We offer extensive experience to handle your commercial and residential property insurance.
You can submit your messages through the online contact form or email at [email protected]. You can also visit their website for the latest updates or call (239) 984-5028 to schedule your consultation.