10/8/24

Let’s talk title! If you’ve never bought or sold a home before, you may not know how the closing process works, but that’s OK. It’s part of the reason we write this blog every week. Our teams want to educate our partners, customers and communities about all things real estate.

That’s why we’re focusing this piece on something near and dear to our hearts: title insurance! It’s a topic we’ve certainly discussed before, but it’s important. So, without further delay, here are three things the common consumer – or homebuyer and seller – may misunderstand about title insurance.    

Thinking it works like any other insurance policy. Many assume that title insurance operates the same way as more well-known products like the auto or health variety. In reality, title insurance is quite different. Those other policies protect you from future risks—like car accidents or medical expenses—whereas title insurance protects you from issues that existed before you purchased the property. Plus, title insurance costs only a one-time fee as part of your closing costs. So, while the protection of your property rights lasts a lifetime – there are no yearly premiums or extra costs down the road.

Believing its protection is only worth it for high-end properties. Our teams believe the ownership rights of every real estate property should be covered by title insurance. After all, the value of the property doesn’t determine the need for title insurance; the potential for undiscovered issues does. Whether purchasing a modest home or a luxury estate, you could encounter title defects like unpaid taxes or legal disputes. Title insurance provides peace of mind by covering the cost of resolving these unexpected issues, which can be substantial.

Not understanding the work (for us) that goes into securing a policy. Here’s something that our industry doesn’t do a good job talking about specifically (so we’re trying to change that). To get a title insurance policy to protect a buyer as long as that person owns a home, title professionals like us must conduct a thorough title search and get approval from an underwriter.  The bottom line is that a lot of work goes into ensuring your property can be covered before a sale can be finalized. Furthermore, if that important and included title search uncovers issues – or potential issues – we work hard to remedy them before a property changes hands. That’s why picking a professional, caring title company is important.

Still have questions about title insurance or the closing process? Whether you’re a buyer/seller, real estate agent or lender, our teams are here to help. Reach out to our nearest branch today!