| Home buyers understand the importance of | | | | is not legally transferred by a previous owner, but |
| purchasing a comprehensive home insurance plan. In | | | | erroneous title records can also be caused by simple |
| the event of damages caused by unforeseen natural | | | | clerical errors. |
| disasters, flooding or fires, home owners feel safe | | | | Government liens due to unpaid taxes. New property |
| knowing their insurance plans will protect them | | | | owners are financially responsible for any liens |
| financially. | | | | associated with their home's title, even if they were |
| Home title insurance works in a similar way, | | | | not privy to their existence. |
| protecting home owners from legal attacks and | | | | Other liens. These could include unresolved |
| ownership disputes on their new home's deed. | | | | mortgages, mechanic's liens or preexisting leases. |
| Although title insurance transactions are often | | | | The property search serves not only to uncover |
| wrapped up in closing services and handled by real | | | | hidden problems or ownership conflicts with the |
| estate agents, property searches and insurance plans | | | | home's land title, but it also works to resolve these |
| are an essential part of every residential real estate | | | | issues before the sale closes. Home title companies |
| transaction. Home buyers have the right to choose | | | | are staffed with insurance underwriters, attorneys |
| their own insurance provider, and understanding why | | | | and professionals who work behind the scenes to fix |
| insurance is necessary helps property buyers make | | | | title discrepancies in order to give the real estate a |
| more informed and possibly more cost-effective | | | | "good opinion". Once a home's title is deemed to be in |
| decisions. | | | | "good standing", an insurance policy can be issued. |
| What is home title insurance? | | | | How Does Home Title Insurance Protect Me? |
| Unlike home insurance, which protects home owners | | | | The protection home title insurance offers to home |
| against unforeseen future disasters, home title | | | | buyers is largely preemptive. By uncovering and |
| insurance protects home owners against unknown | | | | resolving all preexisting title problems, agencies ensure |
| errors or problems with their land's title which may | | | | that no future lawsuits or problems will occur. |
| have happened in the past. Like home insurance, | | | | Residential insurance does, however, also offer |
| purchasing insurance requires a thorough investigation | | | | coverage against future lawsuits and financial losses. |
| of the home's land title, also known as a "property | | | | In the event that a lawsuit attacking the home |
| search", or "land title search". Home insurance | | | | buyer's residential land title, the insurance would cover |
| companies performing residential property searches | | | | the cost of legal defense and, in most cases, the |
| thoroughly investigate the land title's chain of | | | | cost of any financial loss as well. |
| ownership. | | | | What is the Cost of Home Title Insurance? |
| One out of every three Michigan property searches | | | | Typically included in overall closing costs. Costs usually |
| reveal problems which could result in lawsuits or | | | | range from 3-5% of the cost of the total mortgage |
| financial losses for the owner later on. Common | | | | amount. Because agencies may need to perform |
| problems may include one or more of the following: | | | | extra legwork to resolve problems on the title, costs |
| Inaccurate records. Sometimes real estate ownership | | | | tend to fluctuate from transaction to transaction. |