When it comes to title insurance, most property owners don’t know just how much they need it – until they do. And in some instances, making this investment can mean the difference between keeping your property and losing it.
So, what happens if you don’t have title insurance?
What Happens When You Don’t Have Title Insurance?
Imagine buying a home, raising your family, and creating many memories over the years. Then, out of the blue, someone shows up claiming to have rights to your home. It may not sound believable, but it is a very real possibility.
If you find yourself in this situation, what do you do?
Well, if you have title insurance, filing a claim against your policy is one of the first things you will do. This will enable your insurance company to take action on your behalf, fighting for your rights to your property’s title.
These battles can get long, sometimes ending up in court with hefty attorney’s fees. Your title insurance company will protect you. And, in the event that they cannot, you will be paid for the amount of your policy.
Now, what happens if you don’t have title insurance?
You would be left trying to protect your own rights. It could be a costly fight – and you may still lose your property.
What Does Title Insurance Cover?
Generally, title insurance will protect against any title defects that are not found during the title search. Some of the most common issues that a typical title insurance policy will cover are:
- Erroneously recorded documents
- Outstanding mortgages
- Missing heirs
- Fraud or forgery
- Undiscovered liens or judgments
- Outstanding tax liens
There are two types of title insurance – an owner’s policy that protects the owner and a lender’s policy that protects the lender. For most, the latter is a purchase most often a condition of the loan.
Do I Need Title Insurance in Florida?
Florida law requires that you need a title insurance policy when purchasing any property within the state. However, the law gives you the choice of whether you want to purchase an owner’s title policy, a lender’s title policy, or both.
It is important to remember that if you only invest in a lender’s title insurance policy and something goes awry, the only one fully protected is the lender. Yes, they may fight the claim for you, but if they lose, the lender will walk away with the remainder of the mortgage – and you will be left with nothing.
Most Florida homeowners would find it to their advantage to buy an owner’s title insurance policy for the value of the property, even if that means purchasing both. That way, should a title defect arise, you will be protected.
Protect Your New Home with Title Insurance
If you are purchasing a new home, then it is important to understand the value of title insurance – and why you need it in Florida.
At Kendall Title, we understand that this may be your first time going through the home-buying process. We will guide you through a smooth closing and answer any questions you may have along the way.
To learn more about title insurance or to get started on your title work, contact us today at (904) 230-1063.