What You May Not Know About Title Insurance
Title insurance is something every homeowner has—yet people don’t really understand what it is. Title insurance plays a big role in protecting both you and the lender from potential issues tied to your property. And it’s required by the lender!
So, what exactly does it do?
It protects you from unexpected problems including things like fraud, unpaid bills from before you bought the home, zoning issues, or even mistakes made during the property’s registration. It’s part of your closing costs and handled through your lawyer when the mortgage is finalized.
Here’s something most people don’t realize: title insurance usually only covers up to 200% of the original property value. That means if you bought your home years ago for $345,000 and it’s now worth over a million, your policy might not fully protect your current home value.
If you’ve owned your home for a long time, it’s worth checking to see if you need to top up your title insurance. It’s a simple step that could make a big difference if something unexpected ever comes up.