Whenever you are looking to buy a property, an important step is to obtain the title to that property. This legal entity will ensure the transfer of ownership rights of that property from the previous owner. Imagine if there are any issues related to this title that is uncovered after the sale. You may be spending loads of money and time solving financial or legal issues. In such situations, title insurance will be your savior by compensating for the losses incurred due to any issues in the title after the deal.

What is title insurance?

The title for a property is the owner’s legal rights to the property. Whenever a property is sold, purchased, or financed, a record of that transaction is executed in the public records. Further, the records of other aspects related to the property, like liens, taxes, etc., are also done in the records. Whenever you buy a property, you have to ensure that the property does not have any pending liens or similar issues that may impact the ownership rights. Failing to guarantee this way led to the new owner is responsible for solving the problems and paying for hefty losses. Title insurance is a savior that safeguards the homeowners and mortgage lenders against any issues related to the title after completing the deal of that property. Depending on the property type, they will take responsibility for compensating for the legal issues.

In several situations, even with the deep title, research by experts will not be enough to detect the problems concerning that property. Due to this problem, after completing the title search, the title insurance company will offer an insurance policy to safeguard from all kinds of issues that may arise in later stages. The hidden problems may be related to filing errors, forgeries, hidden heirs, frauds, etc. That may be tricky to detect. Other types of insurance policies like life, car, health, etc., will safeguard against any possible issues in the future just for a one-time premium while purchasing the property. The title insurance will safeguard against any errors or frauds that may have been happened during the past ownership period.

Types of title insurance:

There are two kinds of title insurance: lenders and owners. Lenders’ insurance policy will safeguard the lender from any impactful issues till the completion of the mortgage period. The lenders will make this kind of insurance mandatory for the buyers to be purchased. The lender’s policy is generally dependent on the amount of the loan taken. It protects the interest of the lender in the property if there are any sudden issues related to the title. The policy amount comes down every year and becomes nil as the loan is cleared. One main thing to be noticed is that even though lenders require buyers to get this policy on their behalf, it will not protect the owners. The protection for the owners can be achieved via title insurance. While it is not mandatory, it is an essential aspect if you look to safeguard your investment. This policy safeguards the owner’s rights for any annoying issues as long as the owner or their owners own that property. As frauds have become much more advanced in the current era, you have to be smart enough to get yourself title insurance to get complete peace of mind.

What Does Title Insurance Cover?

Now coming to the significant point, what are the main issues covered by title insurance? While the title search can uncover major problems, others are not disclosed via public records. Below are some key points that are covered by title insurance:


These are legal documents connected to the property that acts as a notice of pending debts to another person. Any liens, such as debts for works done on that property not found on the public records, can make the current owner responsible for the pending amounts.

Forged Signatures:

With the advancement in technology and increase in real estate rates, there have been several fraudulent activities for gaining illegal profits. They do it get illegal ownership rights to a title and gain benefits. These activities will put the actual owners at risk since they will invest in the property. The forged document will make the deal invalid since it would not be the genuine record from the actual previous owner.  

Errors in records:

You may not find a specific document in the title search due to wrong spelling or no proper mapping of legal descriptions. But actually, this missing document may be connected to the property. Some situations may arise to haunt you and make you resistible for paying all the pending financial or legal terms costing you to lose the title to that property.

Is Title Insurance really important?

You may feel that the owner’s policy is optional as only lenders’ policy will be mandatory to be purchased. But failing to have a title insurance policy may make you pay a hefty price in later stages. Purchasing a title insurance policy from a trusted title insurance company will ensure that the owner will be safeguarded until they or their heirs will have ownership of that particular property. Even though you may be confident after the title search, the hidden issues may arise at some stage to make you payload more than your actual investment.

To wrap up:

Title insurance offers that much-needed safety and peace of mind for homebuyers who are making their lifetime investments. Since there is no prediction of any hidden issues popping up, reliable title insurance will make you face the consequences easily. Select a company like Utah Title insurance company, a trusted name in Utah with their team of experts who give exclusive options for your property protection.

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