Title Insurance - 5 Common Misconceptions

While arguably one of the most important forms of title insurance, title insurance is also quite possibly one of the least understood. Title insurance is designed to protect homeowners from financial loss (or worse - loss of their homes) due to complications with their titles. As your top resource for title insurance at the Lake of the Ozarks, the team at Arrowhead Title, Inc. is here to help dispel some of the most common misconceptions about title insurance.

Misconception #1
Title Insurance Protects The Value Of The Home
In fact, title insurance does not have any impact on your home's value. Title insurance does, however, protect your right to ownership of the home in the event that an issue arises with your title.

Misconception #2 
The Lender Requires Title Insurance, So I Don't Need To Purchase My Own.
Your lender will almost definitely require a title insurance policy, but that does not mean that you should not purchase a policy for yourself as well. Your lender will require a Lender's Policy, which does not provide any protection to the homeowner. When you buy a home at the Lake of the Ozarks, it is important to purchase an Owner's Policy to protect your investment as well.

Misconception #3
Title Insurance Requires Annual Fees
Actually, title insurance is purchased for a one-time, premium up front. After this initial purchase, your title will be insured as long as you or your heirs have a vested interest in the property. This one-time cost makes title insurance the most affordable form of insurance.

Misconception #4 
Title Insurance Is Permanent
Contrary to popular belief, title insurance policies last only as long as buyers and their heirs have a vested interest in the property. Every time a specific piece of property is sold to a new buyer, the title insurance policy must be reissued. 

Misconception #5
You Should Wait And Purchase Title Insurance After You Move In
Would you buy a car without taking it for a test drive first? Of course not. The test drive is what allows you to get a feel for the car and make sure there aren't any serious issues with the vehicle. Real estate transactions (and the role of title insurance in the process) works the same way. One important part of title insurance is the title search, during which your Lake of the Ozarks title company thoroughly investigates all public records in order to find any potential complications with your title. By taking this step ahead of time, you will be able to resolve any issues with your title before closing.

Don't allow any of these common misconceptions to lead you down the wrong path. Your friends at Arrowhead Title, Inc. are here to guide you through the process, from start to finish.

The Lake of the Ozarks' Most Trusted Title Company


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