Buying a new home, vehicle, or other piece of real property is always a major investment. Due to the importance of these investments, making sure the asset is properly insured is an important responsibility. For those that are located in the Laurel, MD area, one important type of insurance that must be obtained is title insurance. There are several reasons why having title insurance is very important.
When you purchase a home, vehicle, or other asset, your lender will require that a title search will be completed on the asset. A title search will confirm whether or not there are any outstanding liens against the asset. In the majority of situations, any outstanding liens will be properly identified and you will be aware if there are any potential responsibilities.
While title searches are usually accurate, there are situations in which they can miss an outstanding item. In these situations title insurance will provide you with coverage to pay for the liens that were missed on the title report. In most cases, your lender will require you to have insurance coverage up to the amount of the outstanding loan.
Additional Title Insurance
It may be wise to purchase additional title insurance as well. If there is a significant lien on the asset, the lien holder could potentially use it to foreclose on your asset. While the lender will be repaid through their policy, you could potentially lose all equity that you have in your home. The additional title insurance will be ensure that your equity is protected.
Due to the importance of title insurance, Laurel, MD area residents should reach out to Mid Atlantic Insurance Financial to discuss their insurance needs. Mid Atlantic Insurance Financial will be able to explain the benefits of title insurance and make sure that your insurance needs are properly met.