Alabama Title Company
If you plan on purchasing a home soon, it is important to get in touch with an Alabama title company promptly. They can assist you with purchasing title insurance. Here are common myths about title insurance that you should not believe.
Title insurance isn’t necessary if you have home insurance
While it is certainly important to have adequate home insurance, it will not replace title insurance. Home insurance and title insurance cover completely different things. Home insurance protects against damage to the actual property from fire, vandalism, storms and other disasters. Title insurance, on the other hand, covers issues that occurred before you bought the home, such as liens, forgery and easements.
Title insurance requires monthly payments
Title insurance is different from other types of insurance. Most insurances require you to pay a monthly premium while title insurance does not. You just have to make a one-time payment at closing. After that, you do not have to worry about it again.
Title insurance isn’t worth money
There are many costs that go into purchasing a home. As such, you might wonder if you can go forgo buying title insurance and save some money. The truth is that title insurance is very necessary to have. Even if an Alabama title company performs a title search, it could miss potential risks. For instance, a title search might not reveal an unknown heir who may have rights to property. If you purchase title insurance, you avoid heavy expenses down the road.
Title insurance isn’t needed if you pay cash for your home
If you buy a home in cash, you might think that title insurance is no longer necessary. This is not true. Although paying for a home in cash eliminates the requirement of a mortgage loan, it does not eliminate the need for title insurance. Just because your home is paid for, does not mean there can’t be title defects down the road. Purchasing title insurance will protect your investment.
You can’t select the title company
Some homebuyers are under the impression that they are not allowed to hire their own title company. The truth is, however, that you’re permitted to select any title company you want. You definitely do not have to purchase title insurance from a company the seller chooses.
If you have further questions, you should schedule a consultation with an Alabama title company. Contact Closeline Settlements today.