There is a popular meme that comes from an Old El Paso taco kit. In the commercial a family is unable to decide between soft taco shells or crunchy shells until a dark haired young girl solves their problem with a simple question: Why not both? This one statement is celebrated by the family and the commercial launched her into meme stardom for any time people don't believe they should have to choose between two excellent options.
What does that have to do with title insurance? Read on!
Whether it's a brand new building or an old fashioned home, unexpected and often complex title issues can arise. That's why most lenders require the purchase of a new title insurance lender policy. This type of policy is almost always required for home purchases of any size. It protects the lender from financial losses due to title claim issues. The challenge is that it ONLY protects the lender's interests.
This can leave the buyer at risk when it comes to anything they've invested, like a down payment, or any equity they have built along with whatever appreciation or property improvements have occurred.
This is where the wisdom of a taco-loving, meme-girl is vital. Why not both?
Why not both, indeed: ensuring that BOTH the lender and the buyer is protected is why many real estate professionals recommend buyers also purchase a title insurance owner's policy. If issues do occur, this type of insurance will be your defense, potentially resolving the claim issue in your favor. If the claim isn't resolved in your favor, the title insurer will reimburse the homeowner, not only for the value of the mortgage but the homeowner's insured investment. Further, the title insurer has a responsibility to defend the homeowner's interest, so they will be responsible for paying the legal fees associated with their defense of the claim!
Don't take the chances with what is many family's single, largest investment. Talk to your realtor or speak to a local title agent about making sure you get both!