3 Things That Can Happen If You Don't Have Title Insurance
Buying a title insurance policy is often a purchase that a lot of homeowners consider skipping out on. But in our experience, a title dispute can cost you a lot more than just your peace of mind and sanity. Here are three things that can happen if you don’t have title insurance.
You can lose your home
Believe it or not, someone may try to claim that the home you live in is theirs. And it happens a lot more often than you think. Whether it be through a divorce and the ex-partner didn’t know the home was sold and is trying to regain it back, or someone who inherited the house based on a will from the previous owner, all types of situations are seen.
If you don’t have the proper title insurance, you risk losing your case against these people who are claiming that the home you purchased is theirs, making it highly probable you can lose your home.
You can be liable for liens
When someone is owed money, they may put a lien on someone’s home. And whether or not the person who owes the money still lives in and owns that house, the person who put the lien still wants to get paid.
By not purchasing a title insurance policy for your new home, you risk incurring the cost of those liens and have to pay them out-of-pocket. Plus, purchasing title insurance would’ve done an initial search for liens in the first place, which would've helped avoid the whole situation altogether.
Lose part of your property due to an encroachment issue
One of the biggest nightmares any new homeowner can have? To find out that part of their home isn’t theirs anymore. If your neighbor is disputing with you over the fact that your newly dug-up pool is on their property and not on yours, you could be held responsible for the encroachment and lose that pool. Or, most likely, have to take it out.
But if you have title insurance, you can settle these disputes without much hardship. Your title agents will be able to help out and solve the situation without much-added stress, both mentally and financially.
Naturally, after reading this blog post, we believe you can see the potential financial impact such a dispute over your home’s title can cause. If you want to make sure your home is protected from others trying to take a cut of it, title insurance is your best bet.
If you’re looking to shop for a title insurance policy, don’t hesitate to get in touch with us.