When purchasing a property, numerous considerations come into play: location, price, inspections, and financing. However, one crucial aspect often overlooked is title insurance. In this episode of KEYS TO YOUR ABODE, host Matt sits down with Greg Cooper from Stewart Title to unpack exactly what title insurance is, why it matters, and whether it’s something every buyer should seriously consider.
Understanding Title Insurance
Title insurance is a policy that protects property buyers and lenders against potential losses arising from defects in the property’s title.
These defects can include issues like unpaid taxes, liens, fraud, forgery, or errors in public records.
Unlike other insurance types that protect against future events, title insurance offers protection against past occurrences that could affect your property ownership.
Why Title Insurance Matters
During the property purchasing process, a title search is typically carried out to uncover any issues.
However, even the most thorough searches can miss certain problems.
That’s where title insurance becomes crucial—it acts as a safety net, protecting buyers from hidden risks or claims that could surface after settlement.
Do You Really Need It?
While title insurance isn’t compulsory, Matt and Greg highlight why it’s highly recommended, especially for:
- First-time homebuyers who might not be aware of potential risks
- Purchases of older properties with more complicated ownership histories
- Properties with multiple ownership transfers where errors are more likely to occur
The cost of title insurance is a one-time premium, usually calculated based on the property’s value.
Given the financial and emotional stress that can come with a title dispute, many buyers find it a very worthwhile investment.
Final Thoughts
Title insurance gives you peace of mind that your greatest asset—your home—is protected against the unknown.
While it might feel like another checkbox in an already long list during the buying process, the protection it offers could be priceless.
For a deeper dive into why title insurance matters and some real-life examples, make sure you listen to the full episode of KEYS TO YOUR ABODE with Matt and guest Greg Cooper from Stewart Title:
