Buying a home is one of the most exciting times in your life – but it’s also a bit of a whirlwind. Between inspections, appraisals, loans, and the never-ending piles of paperwork, there’s a lot to do and think about.
Somewhere in all that commotion, you might hear people talking about title insurance and wonder, “Do I actually need that?” The truth is, title insurance isn’t something you want to overlook – it’s an important consideration when buying a home.
This guide takes a closer look at what owner’s title insurance is, how it works, and how much it costs, helping you decide if it’s something you need and why.
What Is Owner’s Title Insurance?
Imagine you’ve just bought a new home, and out of nowhere, someone you’ve never met shows up claiming they own it. Not exactly the dream start in your new home you were hoping for, is it?
Frustrating as it sounds, these things can happen, especially when there are hidden issues with the property’s ownership that you never knew about. Think unpaid taxes, unknown heirs, or errors in the paperwork.
Luckily, that’s where owner’s title insurance steps in. This special insurance protects you if someone else tries to claim ownership of your newly purchased home or land, covering legal fees and other costs if you end up facing one of these issues. The main goal? Making sure you don’t lose your home or your money.
Wait – What About Lender’s Title Insurance?
A lender’s title insurance policy is something your mortgage company usually requires to protect their interest in the property. It covers them. Owner’s title insurance protects you – and that’s why it’s so important.
What’s Covered by Owner’s Title Insurance?
Let’s take a quick look at what owner’s title insurance actually covers:
- Hidden liens: Unpaid bills or debts tied to the property that you didn’t know about.
- Unpaid taxes: Taxes from previous owners that come back to haunt you.
- Paperwork errors: Mistakes or missing info in the sale documents.
- Unknown heirs: Surprise family members claiming the property after the sale.
- Fraud or forgery: Fake documents or false claims made during the sale.
- Wrongful ownership claims: When someone else tries to say the property belongs to them.
It’s never pleasant to deal with issues like these when you’re buying a home. But with owner’s title insurance, you’re covered if any come up.
Is Owner’s Title Insurance a Requirement?
While many lenders ask for it when you’re getting a mortgage, you don’t necessarily have to get owner’s title insurance by law.
That said, just because it’s not mandatory doesn’t mean it’s not worth it. This kind of insurance can save you from major headaches (and costly legal battles) down the line. If anything should pop up out of the woodwork later – trust us – you’ll be glad you took this extra precaution.
How are Owner’s Title Insurance Costs Calculated?
The cost usually comes down to two things: how much your home costs and where you’re buying it. Since each area has its own rules and rates, the price can vary quite a bit.
But the good news? It’s a one-time fee you pay when you buy your property. There are no monthly bills or yearly renewals to worry about. It really is a single upfront cost that gives you lasting peace of mind.
How to Choose the Right Title Company
Getting title insurance means teaming up with a title company you can trust to take care of all the hard work for you. They’ll handle the paperwork, dig into the property’s past to find any unexpected issues, and make sure your ownership is secure.
But how can you be sure you’re choosing a reliable title company?
#1 Check Their Reputation
Start by reading reviews and asking around to find title companies that people trust. A company with a strong track record in your area will have successfully handled lots of closings. They’ll likely be able to handle your transaction with the same care and skill.
#2 Ask About Their Experience
Don’t be afraid to ask title companies how long they’ve been doing title insurance and real estate closings. The more experience they have, the better they’ll be at spotting tricky issues and guiding you through the process.
#3 Compare Costs
Get in touch with a few companies and ask for clear quotes. Price isn’t everything, but you want to make sure you’re getting the best deal without any hidden fees or unexpected costs.
#4 Look for Clear Communication
Pick a company that explains things in a way you can easily understand. They should answer your questions quickly and keep you updated every step of the way, so you always know what’s happening.
#5 Verify Their License
Last but not least, confirm the title company is licensed and insured in your state for extra peace of mind. It’s an easy step that gives you complete confidence moving forward with your policy.
Ready to Secure Your New Home with an Owner’s Title Insurance Policy?
You shouldn’t have to worry about hidden claims or unexpected issues spoiling your new home-buying experience. The Brick City Title team in Ocala, FL keeps you protected from unpleasant surprises with owner’s title insurance you can count on.
Our local experts make sure your ownership is clear and secure, so you can move in with confidence. With offices in Northeast and Southwest Ocala, our title insurance company knows the area and its rules inside and out, helping to make the title insurance process simple and stress-free.
We’ll carefully review every detail of your property’s history to spot and fix any issues before they cause trouble, giving you real peace of mind.
Get in touch with Brick City Title today to learn how title insurance protects you.
