When you finance the purchase of a home, the lender will require you to purchase a title insurance policy. So, what is it, and who’s it for? Title insurance covers the insured against any home title claims that come up on your home after the loan is issued. Claims could be from a contractor’s or tax lien, or active ownership that wasn’t tracked by the county. The who is the most important part here. The policy that you purchase covers the lender, not you, which means that if a claim is made, you’re exposed. So, what can you do? When the lender orders the title policy, the insurance company will usually offer to cover the buyer at a substantially reduced rate for a one-time payment at closing because they’ve already done all the title search. Doing so is profitable for them, and a good deal for you. The moral of this story is to ask your lender about ensuring a title policy is offered to you.
In the same vein, this takes us to the personal safety topic of the week, which is about concealed carry liability insurance. If you are licensed to carry a firearm, are faced with a situation where you have to discharge you weapon in self-defense, and did so legally, does that mean you’re off the hook? Unfortunately, the answer is an emphatic no. You can still be arrested and charged criminally and the legal costs to prove your innocence can be devastating. Even if you are cleared of all criminal responsibility, you may still face a civil suit that can be equally expensive. So if you have a permit and carry, you should consider this type of liability coverage. Some homeowners policies provide coverage in this situation, so check there before making a decision.
There is a good article on title insurance and one on carry insurance below, so check them out. If you’ve gone through a home sale or a self-defense situation, drop a comment below to share your voice of experience!