Why Owner's Title Insurance is Fundamental

Experts at title insurance agency, Riverside Abstract, indicate that buying a home is an exciting, but also a complicated process.

When you decide to purchase a home, there are many processes that are carried out, to ensure the property is a sound and safe investment for you:
  • An appraisal determines the value
  • An inspection lets you know the condition of the house
  • A property survey indicates the precise boundaries of the property and uncovers problems that could affect the use of your property
  • The title insurance company, such as Riverside Abstract, searches public records to make sure your home is free from old claims.
While a thorough search of records is conducted prior to the transfer of ownership, experts from Riverside Abstract point out that fraud, unforeseen events, and human error make it impossible to eliminate 100 percent risk. A lender will require you to have title insurance to protect your own investment, but the bank's title insurance does not protect you.

Riverside Abstract experts share that, homeowner’s title insurance is not required by banks for home mortgages, but it is one of the most important and affordable protections you can buy. For a one-time fee paid at closing, you will be protected for as long as you own the home. Banks require title protection, and you should do it yourself.

Why do you need both policies?

Suppose you buy a $ 500,000 * home, make a $ 150,000 down payment, and take out a $ 350,000 mortgage. If a claim made against your property is successful, you could lose your home title. Under the bank's policy, it will be reimbursed for your $ 350,000 investment in your mortgage. Without an owner's policy, you could lose:
  • The house
  • The down payment of $ 150,000
  • Any appraisal of your home
  • The value of any improvements you have made to the home
  • The cost of legal fees to defend your property
  • The value of your time spent improving or enlarging your property
  • The opportunity to sell or refinance your home in the future. 

What kinds of claims could be made that could jeopardize your rights?

  • Finding out that the original deed was forged
  • The deed is valid, but was granted without the consent of one of the co-owners
  • Boundary problems and improper easements
  • Unreported easements and taxes
  • Heirs whose existence is unknown or not present and have claims on the property.
  • Previous lender still has lawsuit against property
  • An unregistered lien or claim from a contractor who has made improvements to the property.

How does title insurance protect you?

First, according to Riverside Abstract, title insurance covers legal costs if you have to appear in court to defend your property title. Second, it covers any loss you might incur if there is a successful lawsuit against the property.

When you feel ready to buy your home, we hope you will decide to purchase your Home Title Insurance Policy from the company that offers you financial stability and peace of mind – Riverside Abstract.

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