If you are house shopping you have probably started to think about home insurance. Many people do not fully understand what home title insurance is, and are not quite sure if they need it or not.
Golden Eagle Mortgage knows how important home insurance is and wants to help give some insight into home title insurance.
Read on to learn more…
What Is Home Insurance?
The title for property shows the rights held by the owner of the property for legal and equitable interest.
The title shows who the owner is now, what that ownership entails, and when done properly will show a chain of titles, as a history of who has owned the property.
Having a title that is without deficits and that is clear is necessary for a smooth transaction.
According to Investopedia, home title insurance is a type of indemnity insurance that gives protection to lenders and homebuyers in case of issues with the title that leads to financial loss.
You can work with home insurance companies to help you better understand what home insurance is and how to go about getting it.
Types of Title Insurance
The 2 most common types of title insurance, lenders’ title insurance, and owners’ title insurance.
Lender title insurance is typically required by the lender for the homebuyer to get a mortgage.
The individual who is requesting the loan to purchase the property will usually pay for the lender’s home insurance.
This type of insurance will protect the lender in case of financial loss caused by a problem with the title.
Owner title insurance is either bought by the buyer or the seller to protect the home buyer from financial loss that could occur from problems with the title, such as the failure of past owners to pay taxes.
Home insurance can provide protection for the homeowner and bring peace of mind during and after the transaction.
Do You Need Home Title Insurance?
The lender’s title insurance policy is typically a requirement. However, owner title insurance is not usually a requirement, it is a very wise decision. The potential for financial loss that a title with issues could bring is not worth the risk.
You can work with a bank, a broker, or a home insurance company to determine the right home title insurance policy for you and your needs.
Do you want to work the best of all home insurance companies? Golden Eagle Mortgage has a professional team with years of experience that can help walk you through buying a home and home insurance.
Click here to contact Golden Eagle Mortgage today!