3 Reasons to Get an Owners Title Insurance Policy

An owner's policy for title insurance will protect you from any disputes about your property's title in the future. For example, you can insure the title to your home or car. There are many good reasons to purchase an owner's title policy.

#1 Unforeseen Tax Liens

In terms of homes, there are often property tax liens against a home at the time of sale. These liens are against the home itself, not the previous owner, so you may be held liable if you purchase the home. If your title is insured when you find out about the lien, the policy may refund you the sum you spent on the home or pay the owed taxes.

#2 Faulty Titles

In many cases, titles are not as legal as they seem to be. Perhaps the original title was lost, or perhaps the title was forged, but you may find the piece of paper that proves you are an owner is not worth anything in the eyes of the law. Title insurance will protect you here.

#3 Undeclared Disputes

The individual selling you a piece of property must actually own the property, and this is not the case in some scenarios. If the owner is going through bankruptcy or has other financial obligations, you may find the title is actually owned by someone else, leaving you without an asset. Title insurance will kick in if this is the case.