Title Insurance Myths Debunked
Becoming a homeowner is a substantial financial step for most people. When purchasing your home, you want to make sure you do everything to protect your investment, which is why you should buy title insurance.
Misconceptions surrounding title insurance can dissuade people from obtaining the essential coverage they need. At Ohio First Land Title, we understand the importance of purchasing title insurance, which is why we are debunking some of the most common title insurance myths.
Myth: Title insurance offers little protection for the cost.
False. For a one-time payment, title insurance protects you from incurring costs caused by defects in your property. Owner's title insurance ensures that you will not be financially responsible for claims against your property from previous owners, including liens, conflicting wills, and back taxes.
Myth: I only need lender's title insurance.
Almost all lenders will require you to purchase lender's title insurance, but it does not protect you as a homeowner. Lender's title insurance only protects the lender against loss, which is why you must purchase owner's title insurance to protect yourself and your property.
Myth: Since I have homeowner's insurance, I don't need title insurance.
Homeowner's insurance and title insurance are entirely different policies and having homeowner's insurance does not mean you do not need title insurance. Title insurance protects your right to ownership as a buyer and also protects the lender's investment. It ensures that you will not be held responsible for previous claims. Homeowner's insurance, in contrast, protects you against future losses or damages that occur to your home's structure or contents.
Myth: Title insurance does not benefit me but only the title company.
The fees you pay benefit you as a homeowner. Most of your title insurance fees go toward the title search process, examining documents, and clearing title requirements. Your premium is put to good use to protect yourself and your home.
Myth: My realtor determines what title company I can use. According to the Real Estate Settlement Procedures Act (RESPA), you have the right to choose what title company you want to work with, even if it differs from the title company your realtor suggests.
At Ohio First Land Title, we are happy to help you with any of your title insurance needs. Our team of dedicated professionals can help simplify your home buying process. Contact us today for more information; we look forward to assisting you!