Buyers often ask themselves, “do I really need NH title insurance?” Although lender’s title insurance is required if you are obtaining a mortgage, owner’s title insurance is optional. In an effort to save money, many home buyers contemplate not purchasing an owner’s NH title insurance policy. However, this can be a costly mistake. Here’s why.

Title Defects May Be Unknown

Home buyers assume that any title issues would be discovered during the title search before closing. Although some issues may be caught, some are impossible to identify from a simple title search. For example, a title search wouldn’t detect forged signatures or unknown heirs filing claims against a property that was sold many years ago. In fact, it’s not uncommon for issues to arise many years after a home is sold. NH title insurance covers many different possible scenarios that may arise.

NH Title Insurance Cost versus Benefit

As with all types of insurance, NH title insurance is meant to cover the unknown and unpredictable. It offers peace of mind. Given what a huge investment you may be making in your home, it’s certainly worthwhile to get some type of coverage to protect your ownership rights. Additionally, the legal fees involved with enforcing your claim and rights to a property can be very expensive,…much more expensive than the cost of title insurance.

More About Title Insurance

Title insurance is a one-time up-front fee that you pay at closing. It covers you for your entire length of ownership of a property. As with other types of insurance, there are specific things that it covers and does not cover. Ask your title agent for additional information on owner’s title insurance so that you can make an educated decision about whether to purchase NH title insurance for your upcoming home purchase.