Title Insurance Misconceptions: What Homebuyers Need to Know

title insurance

Since title insurance can be surrounded by misconceptions that may skew your perception of it, we can provide some clarity on what you’re protecting when you make an investment in title insurance.

At Colony Title, we know how gratifying the home buying process can be, particularly for first-time homeowners. Ensuring that your property is rightfully protected through homeowners title insurance and lenders insurance is often the first step that you’re going to want to take. While title insurance can be challenging to comprehend, especially when you’re wrapped up in the excitement of the home buying process, it doesn’t have to be a complicated step. At Colony Title, we want to be transparent about title insurance and everything that it entails. Since title insurance can be surrounded by misconceptions that may skew your perception of it, we can provide some clarity on what you’re protecting when you invest in title insurance.

Title Insurance Provides Minimal Protection

The misconception that title insurance provides minimal protection is incorrect. While lenders’ title insurance protects the lender in their investment, owner’s title insurance can save homeowners from a plethora of problematic issues that may arise following the settlement of your home. Owners title insurance fully protects homeowners from any unforeseen problems that may occur, including outstanding debts on their property unpaid by previous owners. An investment in title insurance provides maximum protection for homeowners in the home buying process and after closing.

There is Only Lenders Title Insurance Available

Another common misconception in the home buying process is that there’s solely lender’s title insurance available. This is entirely incorrect. Since lender’s title insurance protects the lender (and is required), homeowners will want to make an additional investment in owners title insurance to protect their property rights fully. As a one-time investment, owner’s title insurance is an affordable option to provide yourself with peace of mind in your new home. 

Title Insurance Will Never Be Used

Some homeowners think that they do not need to invest in owner’s title insurance because they will not have any issues occur. Unfortunately, the title insurance industry has spent millions in defense to protect homeowners from problematic legal issues following settlement. An investment in lender’s title insurance and owner’s title insurance can help protect your property and finances from any legal troubles related to your title and property rights that may occur.

A Title Company You Can Trust: Colony Title

At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.

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