When you are relocating, a lot of questions come up, especially when you are purchasing a new home. One such concern is whether or not title insurance is actually worth it. The short and simple answer is: yes. But do you know why title insurance is so important when you move?
Title insurance actually protects the buyer from any undisclosed existing easements or old loans on the property. Without such coverage, the buyer may be required to foot the bill for these financial burdens. Though the premiums may be a little pricey depending on your coverage, title insurance can be valuable when buying a new home.
A one-time title insurance premium will cover continuously cover the amount equal to the purchase price of the property or its current market value. An added benefit of such coverage is that the title insurance company will actually research the property to find out if anyone else has a staked claim or interest in the property. This can save you a lot of frustration as you plan to relocate.
As the title insurance company conducts its research, it will determine if there are any title problems associated with the property. This is especially helpful during any relocation. Additionally, your title insurance policy will protect you from losses associated with:
- A possible legal suit if someone contests your title before or after you move
- Title defects that cannot be eliminated and would otherwise cause you financial loss
- Any unpaid encumbrances (including repairs due to disaster)
– Lance Grooms