3 Things You Should Know About Title Insurance

Senior couple in front of their homeTitle insurance provides a layer of protection for homeowners who wish to sell or refinance their property. People need to be sure their best interests are protected and they’re enjoying peace of mind.

If you’re planning to talk to a New Jersey title company soon, here are some things you need to know.

1. You need to submit it to your mortgage company

If you’re planning to refinance your property, your mortgage lender will need title insurance. This helps protect them from any defects or errors associated with the title of your property. In essence, a title insurance policy guarantees the validity of the mortgage document.

2. You can save money if you get title insurance

While it might seem like an unnecessary expense, it actually protects you. If there are unforeseen and unaddressed errors or defects, a title insurance policy can protect you from the legal costs linked to it. So it’s advisable to get the policy before you sell or refinance your home.

If you want to save some money when getting the insurance, you can get quotes from various companies and compare all the costs to help you make an informed decision.

3. You need one even for new home construction

While older properties benefit more from this type of insurance, new properties need them too. If you think a title insurance policy is limited to your existing home or property, think again. Sure, the home is new and built from the ground up, but the land on which it is built on is not.

There could be undisclosed heirs to the land and some errors in the previous ownership that could affect your new venture. This is why even new constructions are advised to get a title insurance policy for safety.

Getting title insurance coverage is an important step in safeguarding your investments. Don’t be afraid to ask a lot of questions before you make a decision.

*Always consult your attorney. 

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