Most types of insurance cover the insured in case of future disaster. For example, auto insurance covers you in case of an automobile accident. Health insurance protects you when you get sick. And renters and homeowners insurance protect you in case something should happen to your home. But title insurance works to protect buyers and sellers from past problems that can affect the property’s title.


Because it works so differently from other types of insurance, the misunderstandings about title insurance are plentiful. Our team of title insurance company pros at Liberty Title in Minnesota have put together this guide to some of the biggest myths when it comes to title insurance.


1.      Title Insurance is Not Necessary.

It might be tempting to think you don’t need to purchase buyer’s title insurance. But it protects buyers from a wide range of problems that can arise with the title. Missing heirs, title fraud, and public records errors are just a few of the serious problems that can arise during the transfer of a property’s title. Title insurance protects you from all of these and can pay the legal and court costs if a covered problem should arise.


2.      You Already Have Buyer Title Insurance.

It’s common for home buyers to assume title insurance is built into their sale. That’s because all lenders require home buyers to purchase a seller’s title insurance policy. In fact, the lender title insurance only protects the lender and not the homeowner. It is the responsibility of the home buyer to purchase owner title insurance.


3.      Title Insurance is Expensive.

Most home buyers find it surprising to learn how affordable title insurance is. Title insurance ends up costing only a fraction of your closing fees. But the benefit far exceeds the expense should you find yourself faced with unexpected legal costs due to a problem with the title. The title insurance premium is not a recurring cost, it is a one-time fee and covers you for as long as you own the insured property.



4.      You Can’t Choose the Title Insurance Company.

Many home buyers assume they will have to go with the title insurance company recommended by their real estate agent or lender. In fact, it’s completely up to you which title insurance company you choose. It’s important to choose a company that has a proven service record in title insurance and has legal staff on hand to assist you.


Twin Cities Title Insurance Company

Now that we’ve dispelled some of the most common title insurance myths, we’re happy to help protect your purchase. If you’ve still got questions about title insurance, visit our frequently asked questions page online. We’d love to connect with you personally if you’re ready to set up your title insurance. Connect with our team by calling 763.494.0340, or contact us to learn more.