Title insurance and its cost is often misunderstood by most people. A recent American Land Title Association (ALTA) survey found that a majority of home buyers think title insurance is “just another fee” they pay to buy a home and don’t know how it truly protects them and their family.
Title insurance is different from other types of insurance because it protects you from issues that occurred in the past that may affect your property. It’s a one-time, upfront cost that prevents problems from occurring.
That up upfront cost goes towards:
- Searching for any issues that may affect your property in public records and visiting registers of deeds, clerks of courts and other officials.
- Identifying those issues such as judgements, liens, forged deeds, releases, taxes, levies and many others.
- Resolving any matters identified.
When you consider the size of the asset being protected, title insurance is probably the best value among the majority of costs associated with closing on a new home.
Check out the Buyer/Seller Guide we’ve put together for more information on how title insurance protects you and your family.