The Unsexy Part of Home Buying… That You’ll Be Glad You Paid Attention To
Buying a home is thrilling, equal parts “new chapter” energy and “wait, is this really happening?” excitement. And somewhere between scrolling Zillow and picking paint colors, you’ll hear a term that feels… less glamorous but wildly important: owner’s title insurance. Steve and I have bought an Owner’s Title Insurance Policy on every single house we have ever bought, even the houses from auction!
Let’s make it simple.
What is title insurance in Ohio?
In Ohio, title insurance protects you as the homeowner from issues tied to the past history of your property’s ownership. Think of it as a financial safety net that guards you from unexpected legal claims, unpaid liens, clerical errors, undisclosed heirs, or unknown ownership disputes that may pop up long after closing.
Unlike other insurances that protect you from things that may happen in the future (storms, damage, accidents), title insurance covers what already exists, you just don’t know about it yet.
If someone steps forward claiming they have a right to your property, or if there’s an old unpaid contractor bill attached to the house from 2010 that no one caught, title insurance steps in to defend your ownership and cover financial loss. I have heard of the horror stories from Title Agents, imagine long lost cousin Earl shows up with a will giving him rights to the house you just bought? Complete nightmare without Owner’s Title Insurance.
It’s a one time cost paid at closing, not a monthly premium, and it stays with you the entire time you own the home.
Why does it matter?
Because buying a home is one of the biggest financial moves most people ever make. Owner’s title insurance is peace of mind in paperwork form, ensuring that the dream house you fell in love with truly becomes yours, without old problems following you home.
I am a BIG believer in protecting your home, starting right at the closing table with Title Insurance. So I went right to the experts for this information. I’m not the expert, but I do know the experts! Greg Tudor of Oxford Title Agency, has these top 5 reasons to have an Owner’s Title Insurance Policy.
The Top Five Reasons Why To Purchase An Owner’s Title Insurance Policy
- Title insurance is a “Security fence”: Title insurance creates a virtual “security fence” around your property. Unforeseeable problems may exist and honest human error is always a possibility. These problems can become “title defects” (incorrect information in deeds, mortgages or public records, unidentified liens or claims to ownership, or other items that a standard title insurance may not be discovered in a routine title search).
- One-time premium: Unlike other insurances, title insurance has a one-time premium that is based on rates that are standardized by state insurance regulators. In Ohio, the base rates for title insurance are filed and approved by the Ohio Department of Insurance.
- A discount might be available: An owner’s title insurance policy could be eligible for purchase at a discount when a “reissue rate” is applied. If the seller had a prior owner’s policy issued within a specific timeframe, a discount to the premium could be applied to the buyer’s purchase of title insurance. In Ohio, a buyer could be eligible for this discount if a seller had purchased a prior owner’s policy issued within the last 10 years. Essentially, having a title insurance policy in place could make your property more attractive to prospective purchasers.
4. Potential Cost Savings: If a claim is made against your property, your title insurance company will negotiate with the other party to settle the claim, defend your title in court if necessary, satisfy any covered claim for which it is responsible, and pay any legal costs incurred in defending the title.
5. Ensures a Clear and Marketable Title: Title insurance assures you that you have the legal right to transfer the property to a buyer. This is crucial not only for your peace of mind while living there, but also when you decide to sell or refinance, as it minimizes the risk of issues or delays that could derail the future transaction.
Ready to talk about next steps?
If you’re beginning your home search or you’re already under contract and feeling a little overwhelmed (totally normal, by the way), I’m here to walk you through every step including the parts that don’t make TikTok but absolutely matter.
Reach out anytime, and let’s make sure your future home is protected long after the keys hit your hand.
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