Free Home Market Analysis Search For Homes

Thursday, March 27, 2014

Title Insurance Helps Protect Your Financial Interests and Gives You Peace of Mind



Looking to buy or sell a home in Central Texas? Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (254) 690-4321 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I'm with Dianna Brown from Monteith Abstract and Title and she's going to talk to us about title policy. In my line of work, many of my clients ask me about title policies and how they function.

So, what is a title policy? And why do I need one?


A title policy protects a buyer from any previous defects (liens, judgements, or fraud) in the title of a home. So, if there are any previous unpaid mortgage liens or property taxes (or anything that happened in the past that can affect you negatively), you can claim against that policy and your underwriter would protect you from any damages.

So, for an example, if there was an heir to a property that could not be tracked down, and then showed up one day claiming an interest on the property, your policy would cover you up to face value. You would have to make a claim, and then the insurance company would help to defend that and pay out the policy coverage amount if necessary. All you really have to do when this situation or one like it arises is to pick up your phone and call the title company.

It is critically important to get a title policy, and it is actually required for FHA, VA, and conventional loans. However, you will also want one for a cash transaction because the title policy only protects you up until the time you purchased it. So if you fail to pay property taxes or make payments, you will not be covered for those items.

Title Policies also do not protect you against flood, fire, theft, etc. Those things will be covered under your property insurance, which is a whole different ball game.

Understanding your title policy is important because it can give you peace of mind, and assure you that there is nothing to worry about because you are covered.

So, if you have any more questions about title policy or if you have any ideas about other topics to explore, please contact me because I would be very glad to help you out. You can call me at (254) 690-4321 or email me at Jean@ShineTeam.com

Consider me your #1 resource for Central Texas real estate.