Acquiring a house is a thrilling and noteworthy achievement; but, it also requires working through an intricate network of procedures and choices. 

Title insurance is an essential component of this process that can provide you peace of mind in your new home and preserve your property rights. There are misunderstandings regarding title insurance, just as with any significant purchase, which makes it difficult to determine its actual worth. 

In this post, we'll dive deeper into the most common myths from reality today so you can understand title insurance better.  

Title Insurance Myths

Myth #1: Since my title is clear, I don't need title insurance. 

Truth: Even with a title search, something might be overlooked about the property's past, such as unreported problems. Title insurance protects you against unanticipated claims or disputes that may arise in the future and covers historical events that occurred before the policy's issuance. 

Myth #2: Borrowers do not benefit from title insurance; only lenders do.  

Truth: Owner's title insurance is just as crucial, even though lenders do need their own specific kind of insurance to safeguard their investment. Paying for court costs and possible losses if a title problem arises, protects your investment in the property. 

Myth #3: Title insurance is costly and unnecessary. 

Truth: At the time of purchase or refinancing, a one-time charge is paid for title insurance. Its cost is negligible in comparison to the security it offers, especially when one considers the possible financial fallout from title disputes. 

To put things in perspective, owner's title insurance normally only costs between 0.5% and 1% of the price you paid for your house. You can avoid suffering a large financial loss in the future by getting title insurance.  

Myth #4: Title insurance shopping is an option I can do later

Truth: Early on in the home-buying process, title insurance should be taken into account. It is an essential part of your transaction, and having it ready will facilitate the process for you. Your transaction may be delayed if you wait until the last minute. 

Myth #5: I can handle title research on my own. 

Truth: While conducting your own research is doable, comprehensive title searches require skill and access to specialist databases. Professional title companies, like IndyLegal, have the resources and knowledge to identify any difficulties that you may overlook. 

Myth #6: Title insurance claims are uncommon, therefore I doubt I'll ever need it. 

Truth: Claims for title insurance do occur, and they can have very negative financial effects. When these unforeseen circumstances occur, title insurance offers crucial protection, whether it be from an undetected lien or an unidentified successor claiming possession.

Title insurance is an important aspect of every real estate transaction. By analyzing common myths, we hope to create a better understanding of the importance of title insurance. 

When purchasing a home, preserving your ownership rights and financial security with title insurance is a wise and sensible decision. Making informed decisions to protect your investment will ensure a smooth path to homeownership for you, and we will be there to help you every step of the way! 

If you need help on title insurance or search or have more questions on related matters, we're one call away! Dial 317-214-6023 so we can assist you!