At HomeLife Power Realty Inc. in Guelph, it’s important to us that you understand your options when it comes to owning a home. And while you’re probably aware of home insurance, not all homeowners are aware of title insurance and why they should consider getting it.
What is title insurance?
Title insurance insures the ownership of your property. You can get title insurance either when you purchase your home or after the fact. Having the title to the property doesn’t mean you have title insurance, so it’s important to ask your insurance company if you’re covered.
What does it protect me against?
Title insurance protects you against several kinds of losses, including:
- Title defects that are unknown to you that could affect clear ownership
- Liens against the title that are already in place
- Encroachment issues involving structures that are partially on someone else’s property
- Title or real estate fraud
- Public record or survey errors
- Other title-related issues that would prevent you from selling, financing or leasing the property
There are many benefits that come with protecting the ownership of your home.
1) Protects you against unwanted legal fees
If any of the above issues arise and you don’t have title insurance, you could spend thousands of dollars in defending your title on the property. Whether you’re a victim of fraud or if there are unresolved conflicting ownership claims when you purchase the property, your legal fees are typically covered by title insurance.
2) The policy is effective immediately
Not only does the your title insurance come into effect immediately after purchasing it, but it’s even retroactive. If you purchase title insurance some time after you purchase a property, the title insurance policy date is the date when you purchased the property. Plus, if someone inherits your property when you die, they are also covered by the same policy.
3) Premiums are low
With all of the insurance policies we have to buy in our lifetimes, it can seem overwhelming - and expensive. Home insurance, car insurance, life insurance, and other specialty insurance policies can start to add up, and the last thing you want is yet another expense when you buy a new home. However, title insurance is unique because not only is the premium low, but it’s a one-time payment. You don’t have to pay monthly or even yearly, and your policy is valid the whole time you own your home.
If you’re not sure about whether or not you have title insurance, contact your mortgage broker or insurance company to find out. For more information about title insurance, contact HomeLife Power Realty Inc. and one of our associates would be happy to help!