3 Things to Know About Title Insurance and Title Protection
Many homeowners think that they simply need title insurance and this will protect them from any problems that might arise. However, this is not the case. Title insurance is designed to help a homeowner should someone contest their legal ownership of a property. But it doesn’t help if someone steals your identity and makes changes to your title. The only way that you can protect yourself from this problem is by being aware of when the situation occurs. Here are some things that you should know about the difference between title insurance and title protection.
Title Insurance Protects Your Money and Ownership
There are two primary ways that a homeowner can be protected by title insurance. The first is when money is being wired from one account to another to pay off a loan. There is the possibility that the money could end up being stolen in the process. If this happens while a homeowner is switching banks, using the loan from one to pay off the other, it could result in the homeowner owing both mortgages. Title insurance will help you in this situation. It will also help should someone decide to challenge your ownership of the property. The homeowner will be able to state their claim of ownership and avoid a lengthy legal battle.
Title Lock Monitors Your Title
While title insurance helps you defend your ownership of a property, title lock monitors your title. Home title fraud occurs when a criminal steals a homeowner’s identity and makes changes to the title of the home. This can create various problems for the homeowner. Title lock monitors for any activity that might occur regarding the title. If something is changed, the homeowner will be immediately notified. If they didn’t make the change, they’ll be able to stop the criminal activity before the damage becomes too severe.
Why You Need Both
While title insurance will protect you should someone challenge your ownership of a property, it won’t protect you from all criminal activity. Title lock will monitor your title for any suspicious activity and notify you if anything occurs. This will allow you to protect yourself from any criminal activity that might happen regarding your title. These differentiating factors are important to understand as you need both services to fully protect your title and the ownership of your property.
Title insurance and title protection are commonly thought to be the same thing. However, there are some very specific differences. Understanding these differences will help homeowners realize why they need both of these services in order to fully protect their title and the ownership of their property.