Title insurance made simple

At Spruce, we get that buying a home is a big deal – it's a major investment in your future. One crucial step in this process is making sure that you have full ownership and control over your property. That's where title insurance comes in. For a one-time fee, title insurance can provide a safety net that protects you from potential risks related to the title of your new home.

To break it down for you, here are some common questions about owner's title insurance:

What is title anyway?

Title is your mechanism to owning and using your property, just like the title on your car. It gives you legal rights, control, and responsibility over your home, while also setting any boundaries on those rights.

So, what is a deed?

Think of a deed as the official document that transfers ownership (title) of the property from the previous owner to you. It's signed, notarized, and recorded with the county to make your ownership official.

What is a title search?

A title search is a vital part of the home buying process. It helps uncover any issues like liens, disputes, or other claims that could impact your rights to the property. If any problems pop up, we'll work hard to sort them out and ensure that you have a clear title and can purchase your home with confidence.  If you're getting a mortgage, a clear title is also critical to meeting your lender’s requirements!

What is title insurance?

When purchasing a home, title insurance is a policy that safeguards your investment and property rights.

Why should I purchase owner’s title insurance?

Sometimes the public records that are used during the title search are missing critical information or contain inaccuracies. Title insurance shields your property investment from potential legal claims arising from these potential inaccuracies in public record. For a one-time fee, you and your heirs receive coverage for as long as you own your home. The owner's policy also covers potential legal fees and court costs for settling claims covered by your policy.

What does owner’s title insurance cover?

Your title insurance policy shields you from unexpected issues or claims on your property post-purchase. It covers things like outstanding mortgages, property liens, legal actions, or unknown heirs claiming ownership.

Unforeseeable title claims include (but are not limited to):

Forgery

Making a false document

The seller misrepresents the identity of the person who sold the property.

The seller misrepresents the identity of the person who sold the property.

Fraud

Deception to achieve unfair gain

Someone steals your identity and either sells your house without your knowledge or consent, or takes out a second mortgage on the property and walks away with the money.

Someone steals your identity and either sells your house without your knowledge or consent, or takes out a second mortgage on the property and walks away with the money.

Clerical Error

Inconsistent paperwork and historical records

An unforeseeable discrepancy in the property or fence line can cause confusion in ownership rights.

An unforeseeable discrepancy in the property or fence line can cause confusion in ownership rights.

What does owner’s title insurance cost?

Title insurance works a bit different than property or casualty insurance. You can expect a one-time payment with no deductible for owner’s title insurance. A typical title insurance policy costs around 0.5% of the home’s purchase price. Some properties may be eligible for significant discounts on title insurance if there is a prior policy on the property, Spruce will work to maximize your savings wherever we can.


How long am I covered?

Your owner’s insurance policy lasts for as long as you or your heirs own your property, even through any refinances you may go through in the future.

Spruce® is a registered trademark of MFTB Holdco, Inc.

©2024 Zillow Closing Services Holdco, LLC; All Rights Reserved.

Spruce® is a registered trademark of MFTB Holdco, Inc.

©2024 Zillow Closing Services Holdco, LLC; All Rights Reserved.

Spruce® is a registered trademark of MFTB Holdco, Inc.

©2024 Zillow Closing Services Holdco, LLC;

All Rights Reserved.