Myth: Lender’s title insurance is all I need.

Nearly all lenders will require you to purchase lender’s title insurance, which protects the investment of the bank if issues arise. Buyers also need to invest in owner’s title insurance. Without a separate policy, you may be forced to spend money on a lawyer to protect your rights to the property. While an owner’s policy is not required, it is the only coverage that will protect your investment in the new home.

Myth: Title insurance offers very little financial protection.

Different types of title insurance coverage are available. The policy you purchase will clearly state the amount of coverage offered. How much coverage you opt for is up to you. Title insurance protects you against issues caused or brought against the previous property owner, even after you buy the home. Issues covered include unknown liens and undisclosed heirs, forgery on vital documents, deed errors, unknown easements and property line disputes.

Myth: Title insurance is too costly.

Title insurance accounts for a small portion of your total closing costs but can save you tremendous cash and headaches in the event an issue surfaces. Title insurance costs in Texas are set by the Texas Department of Insurance (TDI) and are based on the property’s sale value. The costs between title insurance companies fluctuate based on the company’s fees for paperwork, title search and other administrative fees. Patten Title Company offers an instant title quote and our experienced team is happy to answer any questions you have about the coverage.

Myth: Title insurance fees go toward the title company, not my coverage.

The majority of your title insurance fees is used toward a thorough title search, examination of any documents or potential issues, and clearing of title requirements. A large portion of the premium is used to actively ensure you and your investment are protected. It’s also noteworthy that title insurance is a one-time fee. Unlike other insurance policies, you do not pay a monthly premium.

Myth: I must use the title insurance company recommended by my Realtor.

You have the right to choose any Texas title insurance company you desire. While your real estate agents or lender may make a recommendation on a title insurance company, you have every right to decline and find your own company. Research multiple companies and compare title insurance rates. Read their online reviews and ensure the company you choose has extensive closing experience.

Patten Title Company is happy to walk you through the different policy options to ensure you’re protected if an issue with the title is discovered. Don’t rely on your lender’s title insurance policy to protect you in the midst of a legal battle. Contact our professional team today for an instant title quote.