​How Does Title Insurance Benefit Me?

Most people understand the benefit of auto insurance, homeowner’s insurance, or health insurance, but why title insurance? What is title insurance? If you’re asking yourself, “why do I need title insurance?” here is a brief explanation of what it is and why you need it.

A clear title properly documents your legal ownership of a property. But if you finalize a purchase only to discover a bill for unpaid taxes, a contractor’s lien, an easement, or other claim that turns out to be legitimate, you could take a huge financial loss.

To insure against such possibilities, you may elect to purchase a title insurance policy. If you are borrowing to purchase the home, the lender will require you to purchase a lender’s policy, which covers the unpaid mortgage balance in the event of a claim. To cover your ownership interest a separate owner’s policy is required.

The good news is that title insurers often search and find cures to title issues so that title claims are infrequent. Accordingly, you get far more than just an insurance policy for that one time premium. Included in the process of issuing a policy is an exhaustive title search, combing through public records all through the title chain to find anything that could possibly call ownership into question.

Title ​re​searchers look at deeds, wills, trusts, old mortgage records, anything that ​might reveal a competing claim, if ​one exists​, on the property. As part of that process, intended ​as protection if something does turn up later, a title insurance policy is issued to protect the lender and, if requested, a separate policy covering the owner as well. If the worst happens and you’ve only purchased a lender’s policy, you may sustain significant difficulties including loss that could be avoided. To ​protect yourself should such an event occur requires a separate owner’s policy.

At First National Title Company, our combined experience in all areas of real estate closings totals hundreds of years, plus, on our staff are some of the most experienced title researchers in the state of Arkansas. We can answer your questions about title insurance along with handling all aspects of your closing. Our experience gives us wide expertise in the field and because we’re locally owned and independently operated, we work for you.

Call any one of our 12 convenient locations listed below, or contact us via this link, and we’ll help put you on the right road to home ownership.