5 Myths About Title Insurance
Unlike health or auto insurance, many people don't understand the importance of title insurance. Most of those people that don't feel the importance, feel that way because they don't fully understand what title insurance does, or they have heard some misconception that leads them to believe title insurance isn't really necessary. Keep reading as we debunk several of the common myths revolving around title insurance at the Lake of the Ozarks.
Probably one of the most common misconceptions people have about title insurance is that they have to go with the company that their mortgage lender chooses. As the buyer of the property, you have the right to research title companies and select the one of your choosing. While it may seem like less of a hassle to go with the preferred title company of your lender, keep in mind that they may not have your best interest in mind. Not all title insurance companies are the same.
Unlike other types of insurance, title insurance is paid as a one-time, upfront fee, paid at the time of closing. The premium is typically calculated as a percentage of the price of the property. The price of the title insurance is far less expensive than dealing with attorney fees and court costs associated with defending your property should any issues with the title arise.
There are actually two different types of title insurance policies. The first is known as a "loan policy" in which the lender is protected. The second is an "owners policy," which is a separate policy that covers the buyer. The loan policy is required when you purchase a home, while the owner's policy is just highly recommended.
The purpose of a homeowners insurance policy is to cover the structure and its contents, as well as provide liability coverage in the event someone is injured on your property. Unfortunately, this type of insurance doesn't help if the homeowner's actual ownership falls under question. Title insurance protects homeowners in situations in which someone else claims ownership to the home. These situations can include forged signatures, unauthorized signatures, unknown heirs, invalid power of attorney and mistakes in public records.
Title insurance only comes into play if there is a claim that comes up against the title of the home. It does not cover the loss of marketability due to that claim. If a claim does arise, you will most likely not be able to sell your home until the issue is resolved and the claim is settled. Most of the work performed by a title insurance company is done behind the scenes, before you close on your home. Their work ensures you as a homeowner get to enjoy your investment without fearing that someday your ownership can be contested.
If you're contemplating buying a home at the Lake of the Ozarks, give us a call at 573-302-1950. Title insurance is one of those things you don't realize you need until it's too late! Arrowhead Title is here to help you avoid those issues and protect your home. It is our goal to minimize your risk and maximize your investment.
The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!
Myth #1 - You Can't Choose Which Title Insurance Company To Work With
Probably one of the most common misconceptions people have about title insurance is that they have to go with the company that their mortgage lender chooses. As the buyer of the property, you have the right to research title companies and select the one of your choosing. While it may seem like less of a hassle to go with the preferred title company of your lender, keep in mind that they may not have your best interest in mind. Not all title insurance companies are the same.
Myth #2 - Title Insurance Is Expensive
Unlike other types of insurance, title insurance is paid as a one-time, upfront fee, paid at the time of closing. The premium is typically calculated as a percentage of the price of the property. The price of the title insurance is far less expensive than dealing with attorney fees and court costs associated with defending your property should any issues with the title arise.
Myth #3 - Title Insurance Only Covers The Lender
There are actually two different types of title insurance policies. The first is known as a "loan policy" in which the lender is protected. The second is an "owners policy," which is a separate policy that covers the buyer. The loan policy is required when you purchase a home, while the owner's policy is just highly recommended.
Myth #4 - I Don't Need Title Insurance If I Have Homeowners Insurance
The purpose of a homeowners insurance policy is to cover the structure and its contents, as well as provide liability coverage in the event someone is injured on your property. Unfortunately, this type of insurance doesn't help if the homeowner's actual ownership falls under question. Title insurance protects homeowners in situations in which someone else claims ownership to the home. These situations can include forged signatures, unauthorized signatures, unknown heirs, invalid power of attorney and mistakes in public records.
Myth #5 - Title Insurance Will Protect The Value Of My Home
Title insurance only comes into play if there is a claim that comes up against the title of the home. It does not cover the loss of marketability due to that claim. If a claim does arise, you will most likely not be able to sell your home until the issue is resolved and the claim is settled. Most of the work performed by a title insurance company is done behind the scenes, before you close on your home. Their work ensures you as a homeowner get to enjoy your investment without fearing that someday your ownership can be contested.
Choose Arrowhead Title for Your Title Insurance Needs!
If you're contemplating buying a home at the Lake of the Ozarks, give us a call at 573-302-1950. Title insurance is one of those things you don't realize you need until it's too late! Arrowhead Title is here to help you avoid those issues and protect your home. It is our goal to minimize your risk and maximize your investment.
The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!
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