April 22, 2015

Residential Title Insurance 101: The Basics for New Hampshire Homeowners

Title insurance is a vital asset for New Hampshire homeowners, but many homeowners—whether new or old—aren’t as familiar with this type of insurance as they may be with health, car, or homeowner insurance policies. This post will “demystify” title insurance for property owners to demonstrate how valuable such a policy can be for local residents.

While home insurance covers the actual structure of the home and its contents, title insurance protects the owner’s interest in the real property on which the home and improvements are built. Simply holding the deed to your property does not mean that others cannot challenge your title (or ownership) of the property. Accordingly, title insurance will protect an owner’s interest in real property from title disputes that might arise from fraud, forgery, liens, or missing heirs of a previous owner who may have once had an interest in the property. Title insurance will provide the property owner with financial protection against losses and the forced removal of improvements to the property, and the policy often pays for the defense costs in lawsuits that might arise regarding these issues.

Many homeowners assume that the property is “theirs” when they sign their closing documents and obtain the deed and keys. Most people don’t want to think about these expensive and complex challenges that could arise in the future to question their ownership of the property they purchased in good faith. Title insurance gives property owners peace of mind and assurance that they will have financial resources to protect their most valuable investment: the home.

Unlike the ongoing premium payments associated with maintaining car, home, and health insurance, title insurance is obtained with a one-time payment. In exchange for that single investment, the title company will research the ownership history of the property to determine if the purchaser is obtaining valid title. The title company facilitates the closing of the sale and issues an insurance policy that insures the purchaser’s ownership interest in the property. There is no “expiration” on a title insurance policy; the one-time premium will protect the owner for as long as he owns the property.

Granite State Title Services is proud to offer New Hampshire’s commercial and residential property owners with the tools they need to purchase and protect their investments. If you have questions about title insurance or are considering obtaining title insurance for a pending transaction, please contact the Granite State Title Services team.