How Not Having Title Insurance Can Be A Problem

Home buying is a thrilling journey, but it can get on your nerves. You may feel anxious between property searches, showings, inspections, paperwork, and mortgage formalities. The stress does not end with sealing the deal and moving into your new home. It brings another set of responsibilities as you need to protect your investment. This includes the risk of nor having title insurance.

Thankfully, homeowners’ insurance offers coverage against theft and damage by natural calamities. But most American homeowners believe that everything is sorted at this stage. Unfortunately, they miss out on title insurance because they undermine the risks. Let us explain how not having title insurance can land you in a problem.

Title insurance document

Undisclosed liens

A title search is an integral part of the home-buying process. It uncovers potential issues with the property. But you cannot expect the process to be perfect as it may miss out on defects like undisclosed liens.

Typically, undisclosed liens include past debts, such as unpaid amounts to a homeowners association. Buying a house with a lien means assuming the seller’s debt, even if you have nothing to do with it. Thankfully, title insurance covers the risk and provides protection from the financial implications of such liens. So not having title insurance can seriously affect you.

Fraud and forgery

Fraud and forgery are more common than home buyers can imagine. A seller may con you with fraudulent transactions and forged property deeds. They may even use fake wills to sell a property that does not belong to them.

Although you can take legal recourse in such cases, the cost can burn a hole in your wallet. Not having title insurance burdens you with the obligation of paying for them out of pocket, so you must definitely buy it.

Last will and testament

Missing heirs

Another risk of not having title insurance is that you may have to deal with unknown or missing heirs after buying a property. You may even encounter someone claiming the property stating they are the previous owner’s heir.

The risk is grave as you may end up losing the home even after buying it. But title insurance can help you fight back and defend your legal claim. You must get it regardless of your location, so title insurance Pennsylvania is a must-have when buying a home in Pennsylvania. It covers the cost of legal fees if an unknown heir files a lawsuit.


Title insurance covers the risk of encroachment on your property without permission. A neighbor or a construction company can unlawfully occupy a part of your property, and fighting them through a legal route is the only option.

Not having title insurance coverage leaves you in a fix as you have to pay the lawyers from your pocket. But you can minimize the risk and protect your ownership rights by buying it.

Court tools

Identity theft

Another risk you can cover with title insurance is identity theft. Imagine someone posing as the owner of a property they do not own and selling it by deception. You may face the real owner knocking on your door and claiming their right to the house.

A long and expensive legal battle ensues, and giving up is not a choice. Title insurance helps you safeguard yourself against identity theft and cover potential financial loss.

Consider title insurance a wise investment to protect your homeownership for the long haul. You cannot overlook these risks because they are authentic, so missing out is not a choice for savvy buyers.

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