When you buy a house, you may find yourself surprised at the number and variety of different insurance products you need. Most insurance products are straightforward and protect against things that you can probably imagine wanting to avoid.

But when it comes to something like title insurance, the necessity gets a little less obvious. What is title insurance, and how can you find the best title insurance rates? Read on to find out more.

WHAT IS TITLE INSURANCE?

Title insurance is a type of insurance policy that protects both a lender and the homeowner on a mortgaged home.

There are different types of title insurance, but basically, the insurance policy protects the owner and mortgage lender against the possibility that someone else can claim ownership of the property. The title insurance policy covers some potential losses that may come up if there's a claim against your home.

Your mortgage lender will almost certainly require you to pay for their title insurance policy as part of your costs. While not every mortgage company requires owners to buy their own policy, it can definitely bring peace of mind.

WHY YOU NEED TITLE INSURANCE

Most homeowners will never find themselves in a position to actually use their title insurance policy. In the majority of cases, ownership of a particular property is clear. But there are some circumstances that can cause problems for both homeowners and lenders.

Circumstances that can lead to a dispute or claims against your property include:

• Inheritance disputes
• Liens against the value of the home due to unpaid taxes or contractor bills
• Clerical errors in paperwork
• Forgery or fraud on the side of the seller

A title insurance policy protects you against a frustrating and expensive financial loss and most of the time spend fighting it.

HOW TO GET THE BEST TITLE INSURANCE RATES

If you decide to get your own policy, you should do some research into title insurance cost for your area. From there, you can look into the best way to get a good deal.

In general, there are a few methods you can use to save money while still enjoying the protection that title insurance provides.

One easy way is to ask for a "simultaneous issue rate," which means that you purchase your policy at the same time as the lender policy. This can help bring down the rate because while the two policies are separate, some insurance companies offer a deal for buying another product.

Of course, the easiest way is to shop around, using a resource like the American Land Title Association to find the best rates.

TITLE INSURANCE PROTECTS YOU AND YOUR INVESTMENT

For both lenders and homeowners, title insurance offers protection against unexpected issues that can come up. Buying a policy from a title insurance company also gives you added peace of mind that the title to your property is truly yours.

By shopping around for the best title insurance rates and thinking creatively, you can get your protection for much less than you might expect.

Secure your financial interests by checking out our services today.