Title Insurance Myths Most People Don't Know!

Title insurance is not something that a lot of home buyers understand very well. It isn't a particularly exciting topic if you aren't familiar with how important it is in protecting your rights to your new property. Arrowhead Title has found that oftentimes people aren't even sure what title insurance is and aren't sure whether or not they need it. As the best title company at the Lake of the Ozarks, we know exactly what it takes to successfully close on  home and keep your title safe for years to come. Keep reading to learn about a few common myths about title insurance.

Title Insurance Isn't Necessary

Everyone should have title insurance. You may think you know the whole history of the house you're purchasing, but it's impossible to know everything. Title insurance protects your right to the property in the event that a previously unknown heir claims ownership of the property, if it is later revealed that the "sellers" were not the rightful owners, or if liens against the property resurface. It also protects you from errors made on the documents at signing, including misspelled names, etc. If you have an owner's title insurance policy, you will not be responsible for paying any of the fees associated with protecting your right to the property, should these types of issues arise.

There is Only One Kind

In reality, there are actually two types of title insurance: lender's title policies and owner's title policies. Lender's policies protect the lender in the event that the owner forecloses on the house or is otherwise unable to pay back their loan. Owner's policies protect the homeowner in the event that something or someone threatens their right to the property, such as unknown heirs or forged signatures. Purchasing a lender's policy is often mandatory, but home buyers are also strongly encouraged to purchase an owner's policy.

Title Insurance Comes Automatically

Your property isn't automatically issued title insurance when you buy a house. Most lenders will require a title search and a title insurance policy to cover their loan, but these services are not included in the purchase of the home. Home buyers will be responsible for purchasing these extra services at closing in order to properly protect their rights to the title.

Refinancing Doesn't Require Title Insurance

Even though you aren't moving to a new home when you refinance, you are still taking out a brand new loan. So, regardless of whether you change lenders or not, the lender responsible for your new loan will almost certainly require you to purchase a new lender's policy. It is true, however, that you should not have to purchase a new owner's title insurance policy so long as certain requirements are met.

Best Title Agency at the Lake

Arrowhead Title does thorough searches of all public records possible before giving the final title report with any issues we've found. But even with our thoroughness and accuracy, there may be issues that aren't a matter of public record that can't be found ahead of time. That is why title insurance is incredibly important and valuable for every homeowner to have. 

If you have questions about your real estate closing or about title insurance on your home, don't hesitate to give us a call! We will be more than happy to help. At Arrowhead Title, we put you first.

The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!

750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049


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