If you plan on getting title insurance, you should consult our title insurance lawyer in MontCo, PA. Title insurance is an important thing to have when you’re buying property. A lawyer can guide you through the process and answer all your questions.
Common Myths About Title Insurance
There are several myths about title insurance myths that can have negative effects for prospective buyers. Here are some of them:
- It is too expensive. Some homebuyers forgo title insurance because they think it is too expensive. There are already so many other costs associated with buying a house and they may think that title insurance is not worth the price. The truth is that this insurance accounts for a small percentage of your closing costs and may save you more money in the long run.
- It actually does not offer much financial protection. One reason why some people are reluctant to buy title insurance is because they don’t think it offers much financial protection. However, how much financial protection you receive will depend on how much coverage you purchase. If you buy adequate coverage, it should protect against deed errors, unknown liens and other issues.
- You do not get to choose your title insurance company. This is another common myth about title insurance. Some people still assume that they have to go with the title insurance company their realtor chooses. However, as a title insurance lawyer in MontCo, PA can confirm, you’re allowed to select your own title insurance company.
- If you pay cash, you do not need title insurance. If you pay for a house in cash, you are not required to obtain a mortgage loan or title insurance. However, that does not mean you shouldn’t still purchase title insurance. With this insurance, you can protect yourself against title defects.
- You have to pay premiums. Most insurance policies require you to pay a monthly or annual premium. Title insurance, on the other hand, doesn’t. You only have to pay one fee at closing.
- It offers the same protection as home insurance. These insurances are quite different from each other. Title insurance protects your right to ownership and the lender’s investment while home insurance covers losses to the house during an accident.
If you have additional questions about title insurance, you should schedule a consultation with our title insurance lawyer at Hoegen & Associates, P.C. in MontCo, PA as soon as possible.