Are you mortgage free? Have you paid your mortgage in full and are no longer making any mortgage payments? This information is for you!
First of all a huge CONGRATULATIONS! It is a significant accomplishment to have paid off your mortgage.
Once your mortgage has been paid in full it is important that you have a Title Insurance Policy in place.
When you have a mortgage the lender will have had this in place for you. Once the mortgage is paid in full the insurance is no longer and it is important that as a home owner you now get a policy.
What is Title Insurance?
Title Insurance will protect you as the home owner against potential losses due to title fraud and property issues. Title Insurance is a one time purchase and does not need to be purchased every year. You can expect to pay between $200 – $400 for a policy. Title Insurance will also provide coverage for property defects that may have occurred prior to purchasing your home.
What Will Title Insurance Cover?
- Fraud – If someone transfers the title on your property fraudulently without your consent.
- Forgery – If someone forges your signature that enables them to sell or mortgage your property.
- Encroachments – If your house built by a previous owner is not within the properties boundaries or if a neighbor builds a structure that is partially on your property.
- Lack of Building Permits – If a previous owner did work on the house without the required permits your municipality could force you to remove or repair the structure.