Why buy residential title insurance?


Buying residential title insurance is important home and real estate investment ownership protection. To understand why you should buy title insurance coverage for real estate, here are some basic facts about a property title and title insurance.

General Facts about Title and Real Estate Title Insuring

Having the title of the property means you are the owner. A title insurance policy protects the title policy owner from defects in title documents and legal claims to the property. Such claims may arise from events prior to signing the title policy from misinterpreted deeds, errors in the public records, falsified deeds, etc.

That is why lenders require that the homebuyer purchases lenders real estate title insurance policy (mortgagee's policy) for the loan amount. Homeowners are advised to buy title insurance coverage for the full property value.

For title issues arising from events occurred after title policy is signed, related mostly to identity fraud and forged deeds, homeowners are advised to purchase extended title insurance coverage.

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