Do You Need to Buy a Home Protection Plan?
If you’re thinking of buying a piece of property, you should also consider purchasing a home protection plan. You may not think you should, but it’s been a lifesaver for many owners. Here’s why you need to have one:
What Does It Protect Against?
There are two kinds: lender’s and owner’s policy. The former is generally required when you take out a mortgage. It’ll protect the investor when things go wrong with the deed or other documents regarding the property. If that happens, they’ll get paid the same amount as the money owed. It usually stays in effect until you finish your loan, sell the house, or refinance.
Owner’s policy, on the other hand, protects the buyers. It’ll match the cost of the house and covers a wide range of problems. The plan will pay in case of tax liens, deed errors, omissions, mistakes in public records, or document forgeries. You can also get money if the heirs of previous stakeholders turn up and make a claim on the property.
You can also ask the insurance agency to extend the coverage. That way, they’ll protect you against other things, such as building permits and zoning law violations, as well as inaccurate surveys. If someone tries to sue you, the policy can cover any legal costs or losses you may incur.
Is It Worth It?
Protection is always worth it. You never know what’s going to happen, and it’s a good idea to play it safe. While no one wants it to occur, it’s nice to be prepared if a problem with the property resurfaces. If you have title insurance, you won’t have to worry about paying for these issues out of your own pocket.
More importantly, it’s not that expensive. It’ll depend on how much your home costs and other factors, but it really is incredibly affordable, especially given all the protection it provides.
How Do You Get It?
It’s not difficult to get it. Just go to a title insurance company and schedule a consultation. They’ll assess your financial portfolio and the property you’re thinking of buying and come up with a plan. Then, their representative will give you a preliminary report. There, you’ll see if there any outstanding problems that need to be resolved.
If there aren’t any, then you can go ahead and buy the house. And, afterward, sign the contract on the insurance policy you chose.
A good insurance plan will give you the assurance of safety and security in your home. Protect yourself, your loved ones, and your property by purchasing one from a trusted company.