Why Do You Need Insurance while Buying a House or Property?
Insurance is generally acquired by people for financial protection, and you might also be aware of insurance policies, like car insurance etc. However, do you know there is a insurance policy called ‘Title Insurance’ which you need to obtain when you buy a house or property?
To own a house property, a title insurance is necessary to protect it from any claims made to your ownership. When your hard work has finally paid off and your dream of buying a home is fulfilled, there shouldn’t be an obstacle in acceding to it
Let us go more detailed about it.
A title insurance is a registered document you get when there is a transition of property from one hand to another. A change in the title happens each time a property is exchanged. To protect the investors or homebuyers, the insurance company vows to compensate the buyers in case of any loss incurred or any defect in the title while buying it from the seller.
Why is the Title Insurance Gaining Significance in the Recent Past?
Making a title insurance mandatory helps you get benefitted from the insurance company in case of any loss in the realty market value or a deformity in the property title procured by you. It will bring the transparency and is mutually beneficial for developers as well as buyers.
A clear title is always necessary to denote your ownership of the property. The following illustration will help you better understand the importance of buying a title insurance.
Suppose you buy your dream home without being aware of the property taxes and that the previous owner from whom you bought the home hadn’t paid the taxes for several years, you are solely responsible and liable to pay those taxes charged against that property. It may even cost your home. Buying a title insurance will help you prevent these kinds of instances and retain your ownership fully.
Title Insurance Not a Big Deal
Buying a Title Insurance doesn’t cost you much. You just have to pay a one-time fee and that’s it, your property is covered for as long as you possess it. As of now, only a couple of companies have launched the title insurance policy since it is a new concept in our county.
In this competitive world, buyers should be aware of all the deals of purchases made, might it be small or large. Big-ticket items like a residential property or house require an extra vigilance before investing. Buying a title insurance for your new home/ property will prevent you from facing any legal proceedings in case of a defect or loss in the market value. To protect yourselves and your property from any loss in the housing market, buying a title insurance is indeed necessary.
