Whether within the family, the business world or the political realm, insurance is a common topic of conversations. And nearly always, they center on auto, homeowners, health or liability coverage. Title insurance, in the meantime, exists in the background: out of sight out of mind. There’s a good reason for that; title insurance differs greatly from other types of insurance in three key ways.
TITLE INSURANCE IS DIFFERENT FROM OTHER TYPES OF INSURANCE
Title insurance takes you back to the future.
Insurance, generally, protects you from future events—illness, a crash, a fire that may be difficult to predict. Contrast that with title insurance. Title insurance also protects you in the future, but it’s by covering events that may have occurred in the past. It protects your property investment from any messy title transfer issues, such as easements, outstanding financial obligations against the property, forgery, fraud, unknown heirs and more.
Title insurance covers ownership, not possessions
Unlike homeowners insurance, title insurance covers ownership of your property. It does not cover any structures, equipment and other belongings on the property. That’s why it’s important for homebuyers to purchase both title and homeowners insurance.
Title insurance is one and done
With title insurance, you pay a premium one time and never need to pay it again. The policy will cover you for as long as you own the property. Nationally, a title insurance policy runs on average $1,000, but it varies from state to state and is based on the purchase price of the property. (For a free instant quote, visit rivervalleytitlegroup.com and click on “Get a Quote.”) Considering your overall investment in a property, it only makes sense to protect it with title insurance.
Title issues are not uncommon
Considering that title issues arise in more than a third of all real estate transactions, it doesn’t make sense to skip title insurance. The value is there, as is the peace of mind it brings.