Your Title Insurance Questions Answered

Common Title Insurance Questions

If you're looking to purchase a new home, title insurance will eventually come up in your search. Many first time home buyers have never heard of this type of insurance and really don't know what it is. To help you understand it better, below are some common title insurance questions you may have.

What Is Title Insurance?

Title insurance is a type of insurance that is purchased in order to protect a buyer's investment when buying property. There are a couple types of title insurance that will basically cover a lender and an individual should any title issues come up after the buyer has closed on the property. A title search will be run before closing just to make sure there are no title defects that can affect the buyer's rights to own the property. Tax liens, outstanding payments, and other issues in the title will be searched for, but these may sometimes go undetected until years later. This is where title insurance will come in and cover legal fees and any potential losses you may be affected by. Your coverage will depend on your policy.

Do I Have to Purchase Title Insurance?

This will vary by state, but buyers are usually required to purchase title insurance by their lender. Since the lender is also at risk of financial losses should a title defect come up, they usually require title insurance. Even if you're paying cash for a home, title insurance is still a must.

How Much Does Title Insurance Cost?

The cost of a title insurance policy will depend on a number of factors. Who you purchase your policy from, your coverage, the state you're buying property in, the value of the property, and other factors will affect what you pay. Do keep in mind, however, that title insurance only requires a one-time payment that covers you for as long as the home is yours and the policy even transfers to your heirs.

Purchase Title Insurance in Plainview, Texas

Now that you better understand title insurance in Plainview, TX, be sure it is part of your closing deal. If you have more questions that you would like answered, contact Countywide Title at (806)293-8363 for all the help you need.