Title insurance is a $22 billion industry in the United States.

Despite this, many Americans aren't familiar with it. If you're wondering, do I need title insurance? This blog is for you.

We'll take a closer look at what title insurance is, the benefits of having it, and how much it costs. So, whether you're buying your first home or your tenth, read on to learn more about title insurance!

WHAT IS TITLE INSURANCE?

Title insurance is a policy that protects the buyer from any issues with the title of the property. Titles are documents that prove ownership of land, homes or other real estate properties.

Title insurance ensures that no one else can claim ownership of your new home and do so in a way where you may be forced to leave.

WHAT'S INCLUDED IN A TITLE INSURANCE POLICY?

A title insurance policy usually includes protection against a number of things. These include:

Fraud, unknown easements or encumbrances

This could be a forged signature on the title deeds, for example. It would also help protect against identity fraud of the sellers.

Fraud can also take the form of undisclosed easements, which are when someone has rights over your property that do not involve ownership. Encumbrances are when there is a debt or an outstanding claim on the property that does not involve ownership.

Title insurance should ensure you're covered against any misrepresentation of facts in the title record.

Liens against your new home from previous owners

If the previous owner of your home has not paid their bills, the companies that are owed money may put a lien on the property.

This means that you will not be able to sell or refinance the home until those debts are paid.

DO I NEED TITLE INSURANCE AND WHAT ARE THE BENEFITS?

Title insurance can offer a number of benefits.

Some of these benefits include, namely, peace of mind - knowing that you're protected from any legal issues with the title of your home gives you peace of mind and allows you to relax and enjoy your new home.

It can also help to speed up the buying process as title insurance companies will often have a team of lawyers who can review the title record quickly to ensure that there are no problems.

A major benefit is also title insurance cost. As far as forms of insurance go, this one is highly affordable. Title insurance usually costs between 0.15% and 0.50% of the purchase price of your home. For a $200,000 home, that would be between $300 and $1000.

SO DO YOU NEED TITLE INSURANCE?

At the end of the day, title insurance is designed to protect you as the buyer from any misbehavior or misrepresentation by the seller. It gives you peace of mind and is usually a relatively small cost compared to buying a house.

Still wondering, do I need title insurance? Yes, most likely! Buying a house is a huge commitment. You don't want to be in a situation where someone else claims ownership over your new home or there are debts attached to it. Having title insurance can protect you against that.

If you're not sure where to get started, talk to the team at Heartland Abstract.