When you make a home purchase, you are committing to what is one of the largest financial investments of your lifetime. It is important that you protect this purchase, not only by trusting a reputable mortgage lender and acquiring homeowner’s insurance but also by considering how title insurance can assist you.
However, even though you may have heard the names of national insurance companies that offer title insurance, be sure to compare these with your local insurance offices. Local insurers offer a number of advantages that nationwide chains may not, and you can typically secure a better product from a local company that suits your needs more specifically.
What Does Title Insurance Do For You?
Title insurance is an often overlooked component of the home buying process. Many people assume that they have a title insurance policy because they pay for a lender’s title insurance fee when they close; however, this is simply the homeowner covering the lender’s own policy, and it does not cover the buyers themselves. Title insurance can protect you from unexpected issues that could threaten your financial security and even home ownership.
If a previously undisclosed lien is discovered after you have purchased the home, for example, you would be responsible for paying it off, even if you had nothing to do with its origination. Similarly, if a formerly unknown heir arises with a claim to the property, you may not have recourse to keep your home without title insurance to protect you. For these reasons and more, title insurance is a valuable addition during your home purchase, and because it is secured with a single upfront payment rather than monthly installments like other insurance, it is affordable and simple.
National Title Companies Are Less Customized
Choosing the right title insurance company for you can seem just as daunting as deciding how much coverage you need. You may be tempted to trust your title insurance issues to a national company whose name you have heard before—and that is exactly why they run so many commercials. However, be sure to examine your local options as well.
Because national title insurance companies must be ready to serve anyone in any state, they tend to offer less customized and detailed plans that are based on the “average,” general needs of home buyers rather than your specific concerns. Additionally, keeping real estate attorneys on retainer is expensive, and so most national companies will elect to send basic notaries public to you for closing instead; these individuals do not have the same depth of experience as your local real estate lawyer would.
The Importance Of Reputation
When you work with a national company, you are just one of hundreds or even thousands of individuals that that company is working with at any given time. If you have a negative experience, you are a drop in the bucket of paying clientele. This is not the case with local insurers; because they rely solely on your area for their business, they are obligated to work harder for better results so that you are satisfied and their business can continue to thrive. In this way, you are more likely to get better service from a local title insurance company.
The Duty Of Care And Knowledge Of Local Laws
Another advantage of a local title insurance company over a national provider is their experience with your specific local laws and regulations. If your area’s laws require certain steps or processes in order to properly close on your home, a national company may not be sufficiently aware of these details. This could result in improper filing of your paperwork, a faulty deed to your home or even unpaid real estate taxes based on the specifics of your area.
A local title insurance company has worked in your region for years and understands exactly how to quickly, efficiently and comprehensively close on your home with no issues. You can also rely on their experience in the area to inform you of whether any riders or upgrades to your policy may be necessary.
Trust Your Local Title Insurance Company To Provide The Best Service
Whether you are just learning about how title insurance can help you for the first time or you are ready to commit to a policy and are examining your lender options, do not forget to check with your local insurers. The experts at Mathis Title Company would be happy to help you understand your options based specifically on your local area. Reach out to learn more about our services or to schedule an appointment to discuss the title insurance that would work best for you.