Myths About Title Insurance - Knowing the Truth

For those who are not in the real estate industry, real estate closings aren’t something you do very often. As a result, many people are not familiar with exactly what title insurance is, how it works, and why they need it. They just know it’s a necessary step in order to close on their new house. But there are very important reasons why title insurance is required. In this week's blog, we wanted to talk about three common myths regarding title insurance and share the truth with you so you can make an informed decision. At our title agency at Lake Ozark, we believe in clear communication and educating our clients. We know it is not worth taking any chances when it comes to your real estate closing. So, if you would like to learn the truth regarding some common misconceptions surrounding title insurance, just keep reading.

Myth #1 - If my title search comes back clean, I really don’t need title insurance.

Our title agents at Lake of the Ozarks are extremely skilled in conducting title searches. But the truth is, not every defect can be found in public records. Missing heirs, forgeries, fraud, and other defects can still come up after you’ve closed. A thorough title search will definitely help reduce your risk, but you must have a title insurance policy to protect your property ownership in case an unknown problem is discovered after you close on your home.

Myth #2 - If it was important, I would be required to have owner's title insurance.

Only if you are financing your home will you be required to have title insurance. But that title insurance policy is to protect your lender, not you. Many people do not realize that. Your lender is not going to require you to protect yourself. But if they won’t loan you the money without them being protected, it only makes sense that you shouldn’t borrow the money without you being protected.

Myth #3 - I don’t need a title search if I’m building a new home.

Building a new home is a huge investment, and probably a dream come true. But without a title search, there may be easements, restrictions, encumbrances, and more that can limit the use of your land and make your house plans unfeasible. Imagine spending the time and money to build a home that is exactly what you want, and then finding out that the person who sold the land to you did not have clear title, or an unknown heir arises and challenges your property rights. For so many reasons, you should never take the chance of buying property for a new build without knowing a thorough title search has been done and owner’s title insurance policy issued.

Know the Truth When it Comes to Title Insurance

At Arrowhead Title, we have been handling real estate closings at Lake of the Ozarks since 1984. We care about each and every one of our clients and know the importance of protecting their investments. When it’s time for you to build the home of your dreams at Lake of the Ozarks, trust Arrowhead Title to conduct your title search and provide title insurance at Lake of the Ozarks. We will keep you informed and look out for your property rights as if we were purchasing the home ourselves. For all your real estate closing needs and questions, don’t hesitate to reach out to us. We are happy to help. For more tips and helpful hints, be sure to follow us on social media to stay informed about real estate at the Lake of the Ozarks. We have our links to our social media channels below for your convenience.


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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