You Know That Saying, That’s What Insurance is For?

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Chances are, a lot of homeowners do not have title insurance. Some might even admit that they didn’t even know such a type of insurance existed, but it is important to understand why it is beneficial. 

If you ask an average group of middle-aged American whether or not they have car insurance, it’s safe to assume that the most common response would be “Yes”.

Most people have car insurance

The same would apply to health insurance and life insurance. However, if you popped the following question – “Do you have title insurance?” – the answers may vary much more. Chances are, a lot of people would reply that they do not have title insurance. Some might even admit that they didn’t even know such a type of insurance existed.

Many people do not know about title insurance – image by vnexpress.com

Title insurance does exist and it is just as important as any other insurance policy available on the market. This type of insurance is especially important for real estate property lenders and owners. Consider the following scenario.

You are the owner of a property. According to you, the land title belongs to you. However, one day you find that the legal documents say something else. This means the title of your property is damaged.

What would you do if the title of your property is damaged? – image by hubbertlaw.com

Who will help you in this case? You could file a case against the person who has damaged the title of your property, but that would mean having to spend your own money. Who will bear the expenses? Do you have any insurance to protect you in this case? It may be difficult for you to bear the expenses as in the case of any severe health issue or damage to your home.

That’s where title insurance comes into play, which could help you in this type of precarious situation by bearing the loss incurred or by bearing the expenses.

Title insurance could help you in this type of precarious situation by bearing the loss incurred or by bearing the expenses – image by azbigmedia.com

On the opposite end of the spectrum, if you lend money by keeping real property in mortgage, then you also need title insurance to keep the titles of the mortgages safe and secure. Yes, you do have to pay a premium to buy title insurance. Chances are, you are probably paying the premium for your life and health insurance policy, so why shy away in the case of title insurance?


There was a time when very few title insurance companies even existed but that is no longer the case.

Reasons why you need title insurance – image by crescenttitle.com

You have options, which is good because just like with any other form of insurance, you should shop around and find the right company for you. Check out prices, policies, and of course customer reviews. An experienced and reputable title company will be able to answer any and all of your title insurance questions because chance are you have quite a few.

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