Purchasing a home in Connecticut is a major investment. To safeguard your investment, you may want to consider title insurance.
Title insurance protects homeowners and their lenders from potential issues with the property’s title or legal ownership. But do you really need title insurance when buying a home?
Understanding title insurance
Before you decide whether or not to get title insurance, you must first understand what it is and what it covers. Title insurance protects you from past events that might affect your property’s ownership. For instance, the insurance can cover you if there are liens against the property, if previous owners had unpaid debts or if there were issues with the property’s deed.
Title insurance differs from other insurance types, as it protects you from past events instead of future ones. Once you purchase a policy, it will remain in effect for as long as you or your heirs own the property.
The importance of title insurance
While title insurance is not mandatory in Connecticut, it is highly recommended. Why? Because your home is one of the most significant investments you will make in your lifetime, and you want to protect it.
For instance, even if a title company does a comprehensive title search, certain hidden issues, like forgery or undisclosed heirs, might surface after you take possession of the property. Title insurance ensures that these and other potential problems do not result in financial loss for you.
Evaluating your need for title insurance
To determine whether you need title insurance, consider the potential risk factors. How old is the house? Has it had many previous owners? Are there any known disputes over boundaries or liens?
If your property has a complex history or if you have concerns about potential issues, you may find peace of mind in having title insurance. Moreover, if you are taking out a mortgage to purchase the property, your lender might require you to purchase a lender’s title insurance policy to protect their interest.
When it comes to safeguarding your property, it is always better to err on the side of caution and purchase title insurance. Your home is worth it.