Top 3 Myths About Title Insurance (And Why They’re Wrong)
Title insurance. Not exactly the most thrilling topic—until you need it. And by then? It’s too late. The truth is, title insurance is one of those things people tend to misunderstand, brush off, or assume they don’t need… until they’re knee-deep in a real estate nightmare. So let’s bust a few of the biggest myths floating around, because if there’s one thing we love more than smooth closings, it’s setting the record straight.
Myth #1:
“Title insurance is just another unnecessary cost.”
Oh sure, just like seatbelts are just another strap across your lap. Or like locking your front door at night is just a minor inconvenience. The reality? Title insurance isn’t some bureaucratic cash grab—it’s your safety net against problems you don’t even know exist yet.
You see, when you buy a property, you’re not just getting four walls and a roof; you’re also inheriting its entire history. And sometimes, that history isn’t as squeaky clean as you’d hope. Hidden liens, undisclosed heirs, forgery, clerical errors—title issues are real, and they don’t discriminate. Without title insurance, a single unresolved claim could mean paying out of pocket for someone else’s mistake. So, unnecessary? Only if you like financial surprises (the bad kind).
Myth #2:
“If a title issue wasn’t found at closing, I’m in the clear.”
Ah, if only real estate worked that way. Unfortunately, title issues don’t operate on a neat and tidy schedule. Some problems don’t reveal themselves right away. Months—or even years—after closing, a long-lost heir might emerge, an old unpaid debt might resurface, or a clerical error from a past transfer could suddenly put your ownership into question.
Without title insurance, you’d be left handling those messes solo, and let’s be real—nobody buys a home dreaming of future legal battles. But with an owner’s policy in place? You’re covered. So even if a title issue pulls a disappearing act at closing only to reappear later, you won’t be the one footing the bill.
Myth #3:
“I don’t need an owner’s policy if my lender has one.”
It’s a common assumption: If the bank has title insurance, I’m good, right? Wrong. Your lender’s policy protects exactly one party: the lender. Not you, not your equity, and definitely not your peace of mind.
Think of it this way—your lender is covering their investment, which makes sense. But what about yours?
The Bottom Line
Without an owner’s policy, you’re leaving your biggest purchase exposed. If a title issue pops up and you’re not covered, your lender won’t be the one paying for legal fees or dealing with a claim. That’s all on you. So, while your bank’s policy is great (for them), an owner’s policy is the only way to make sure you stay protected, too.
Title insurance may not be flashy, but it’s the kind of protection you don’t want to be without. It’s what keeps real estate transactions smooth, stress-free, and free of unwelcome surprises. And if we’ve done our job right, it’s also what lets you sleep easy at night, knowing your home is truly yours—no myths, no mysteries, just peace of mind.
Need to talk title? You know where to find us. (And yes, we’ll bring the snacks to closing.)
