5 Reasons I Need Title Insurance

Title insurance is something that you as a business owner may not even think of when you go to buy a property, building, or land parcel, but you should.

Title insurance can be the difference between a nightmare sale and a great start to your small business ownership.

There Are No Premiums

Where most insurance policies have monthly or quarterly premiums that are due, title insurance is only a one-time fee, usually paid upon closing. This is cost-effective and you won't have to worry about a long-term payment. The price is added into the other closing costs associated with your mortgage.

You Can Negotiate Cost

While the cost is typically around 1 percent of the price of the property you're purchasing, you can still negotiate the cost. Title agencies are able to offer deals and discounts, especially if you are purchasing both types of title insurance from their office. Always ask about discounts, as title agents don’t always volunteer the information, but it may be available upon asking. Some states will allow the buyer and the seller to split the cost of the insurance as well.

It Protects Against Title Problems

There are a variety of problems that the simple act of getting title insurance can guard against. Not only does it help protect you against legal claims to the property, but it also helps shield you from forged paperwork, wayward heirs to the property coming forward, and creditor claims.

There Could Be Legal Headaches Without It

If you do not have title insurance that has been researched by a reputable title agency, you could find yourself being sued by creditors, heirs to the former property owner, and those with easement claims. This would result in attorney fees and effectively shut down your plans for a business in that location while keeping the money you've paid for the property in limbo. This legal headache could be lessened with title insurance, as it guards against this. Even if you are sued under title insurance, the title agency who filed the paperwork will be on the hook for the attorney fees, lessening the blow just a bit.

It Can Protect Your Heirs, Too

The Owner's policy portion of title insurance not only protects the new owner of the property, but may help protect their future heirs. A title agent can tell you more about the stipulations for this aspect of the policy and how it holds accountable in your state.

Title insurance is one of those things you don't think of, buried in the closing costs and paperwork you're obligated to sign. Many have no idea what it does or if they really need it.

Chances are, you probably won't need it. But for those that will, it more than makes up for the time and effort that would have been spent without it.