So, what is title insurance?

Title insurance is an interesting and necessary part of the real estate equation.  When a buyer gets a loan for a home, the lender is going to REQUIRE that the buyer purchase a lender's policy of title insurance.  This means the purchaser buys the policy to protect the lender's interest in the property.  But what about the buyer's interest?  

Well, thankfully, one can also purchase an owner's policy at the same time.  This is a nominal one-time fee that is collected and built in to the closing.  But, is it required?  No.  The buyer chooses whether he wants to buy it.  But if he doesn't, he's quite simply crazy.  The people of Rock Hill and York County were pretty thankful they had owner's coverage when the Catawbas came a-knocking at the door.  Of course, this is one of the most extreme examples that we've seen in this state but there are lots of other, more common situations that do occur.

For instance, that title insurance will protect the homeowner in the event that "one day" it's discovered that there was an old mortgage that wasn't satisfied, or that a deed was forged, or that a seller's mistress signed the deed rather than Mrs. Seller.  This insurance protects your interest in that property and represents you in the event of any legal action.  In short, it can be the best nominal one-time fee you can buy!

Insurance Explained

Not only is having insurance a good idea, if you're getting a mortgage, it's required.  A lender doesn't want to loan you all that money without knowing that the house is insured.  So, what does this insurance do for you?  It covers you in the event of something catastrophic such as a tree falling on the house, fire, someone crashes their car into your house, etc.  But, it can also cover you for theft or if someone is injured on your property.  So, don't forget to insure that engagement ring!

Homeowner's Insurance is not the same thing as a home warranty.  Sometimes people get confused here.  A warranty covers "working parts" of your house like the hvac system, water heater, dishwasher, etc.  This is a one year policy that can be issued at the time of closing. It's not uncommon for sellers to provide this for the buyer.  But you can also issue a warranty on your current home even if you bought it a while ago.  Each year, the warranty company will offer you a renewal.  This can be great piece of mind because all of these working parts are aging, and if you buy an older home to begin with, it could be a lifesaver.  If it's July 4th weekend and your air conditioning goes out, it's nice to have someone come fix it for a $50 deductible rather than a typical service call fee and parts and labor...trust me.

So, where do you get homeowner's insurance?  Most of our clients start with whomever has their cars insured.  Insurance companies offer discounts the more policies you have with them.  But don't stop there.  Shop around.  You can do it by phone, with no obligation and you just might find someone else can make you a better deal.  You'll probably call the "big guys" but don't forget about the independent agents.  Often, they can shop more insurance carriers and really beat the big guys. Happy quote hunting!