Young woman asking "Why do I need title insurance?".

Why Do I Need Title Insurance?

February 13, 2019

You have made it almost all of the way through the home buying or building process, and now you are wondering … what are the benefits of title insurance and why do I need it?

Because for many people the purchase of a home is the largest single investment that they will make, it makes sense to protect it. Your owner’s title insurance policy protects your ownership rights as long as you or your heirs have an interest in the home.  

Just like your homeowner’s policy will protect against loss from theft or fire and wind damage, your owner’s title insurance will protect you from hidden title hazards that threaten your financial investment in your home. Title insurance is unusual in that it protects you from losses caused by errors that may have occurred in the past, while most insurance products protect from losses incurred if something happens in the future.

A title search does due diligence during any property transaction, but mistakes can be made and things can be missed. Oftentimes a home or piece of land has been owned by numerous people stretching back a century or more. An owner’s title insurance policy protects from possible errors, and from future claims or undiscovered interests. Such errors and claims might include forgery of deed documents, fraud, and mistakes in public records.

So does this mean that an owner’s title insurance policy is not necessary for a new build home? No, actually construction of a new home has potential for exposure to unique pitfalls. You may think that you are the first property owner when constructing or buying a newly built home.  However, there were likely numerous owners of the unimproved land over the years who may seek to claim ownership rights. There is also the potential that the home’s builder failed to pay subcontractors or suppliers during the construction of your home, which could result in a lien being placed on your property. Real estate is too big of an investment to leave the validity of your ownership to chance.

In a highly competitive industry with all the pitfalls that can occur with financing, Ohio Real Title clearly stands out. We call you back. We pick up. We engage. We have the tools to make this process easier and more efficient. We provide calm where sometimes it doesn’t exist. We have a relaxed culture with an open door policy. We love what we do, and we’re really good at it, and we think it’s important—because everyone deserves an easy, successful transaction during a stressful time. This is who we are. Contact us today.