Rachel Marie DeSimone Discusses What Title Insurance Is and Why You May Need It

Rachel Marie DeSimone, Naples resident recently discussed what title insurance is and why you might need it.

There are few times in life when you’ll sign as many pages as during your loan closing. Amongst those countless leaflets of paper is a fee known as title insurance, and if you’re like many Americans, there’s a chance you’re not quite sure what this fee includes. Legal assistant Rachel Marie DeSimone recently discussed what title insurance is and why you may need it.

Rachel DeSimone first explained that title insurance is typically required by a lender for their own protection. It is typically paid for by the buyer or the seller. Rachel DeSimone added that title insurance essential protects the insured person from financial loss related to owning the property. A lender’s title insurance policy is required and an owner’s title insurance policy is optional. Fortunately, Rachel explained that title insurance is a one-time payment, so you find yourself with a monthly or annual bill.

“Title insurance is essentially required to protect you from any undiscovered issues that could affect the ownership of the property years after you purchase it,” Rachel DeSimone said. “Ideally, the home you purchase has a clear title, and the research company doesn’t find any issues, defects or outstanding claims.”

However, Rachel explained that these defects can be clouded and come to appear years down the road. This is when title insurance can protect you from major legal costs or even losing your property if a major title defect arises.

“Lender’s title insurance is a no-brainer, because you or the seller is required to purchase it,” Rachel DeSimone said. “However, you may be wondering if you should purchase an owner’s title insurance policy.”

Rachel DeSimone, Naples, FL based,  explained that when the seller transfers the deed to the property, many owners expect any defects to be the responsibility of the seller. However, the seller has transferred such risks over to the insurance company. That means that the lender may be protected by the title policy, but you may not be. Rachel DeSimone explained that many homeowners don’t end up needing to use their owner’s title insurance policy; however, the amount of peace of mind experienced from purchasing one is often worthwhile. The choice is yours based on the amount of risk you’re willing to take.

Rachel DeSimone recommended speaking with a mortgage lender or qualified legal consultant further about title insurance and whether or not owner’s title insurance is right for you.