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By Nashville Indiana Title Company
The Document You Never Think About Until You Really Need It Everyone talks about their mortgage paperwork. Everyone keeps their deed in a safe place. Bu...
Everyone talks about their mortgage paperwork. Everyone keeps their deed in a safe place. But there's one document from your closing that most homeowners file away and forget about – until something goes wrong with their property's history.
Your title insurance policy might be the most important document you signed at closing, and here's why that matters more than you probably realize.
Title insurance isn't like your car insurance or homeowners insurance. It doesn't protect against future problems – it protects against past problems that nobody knew existed when you bought your home.
Think about it this way: when you bought your house in Nashville, we researched the property's history going back decades. We checked court records, tax records, and previous deeds to make sure the seller actually owned the home and had the right to sell it to you.
But here's the thing nobody explains: even the most thorough title search can't uncover every possible issue. Some problems are hidden in records we can't access, or in documents that were filed incorrectly years ago.
That's where your title insurance comes in. It's your financial protection if one of these hidden issues surfaces after you've already moved in and made the home yours.
At your closing with us, you actually got information about two different title insurance policies, even though you might not have realized it.
If you have a mortgage, your lender required a lender's policy. This protects the bank's investment in your home. It's required, and you pay for it, but it only covers the lender.
The owner's policy protects you. This one is optional, but it's the coverage that actually matters for your family's financial security. When we explain this at closing, we recommend it because it's a one-time cost that protects your ownership for as long as you own the home.
You might wonder what kinds of issues could possibly show up years after you've bought your home. Here are the real problems we've seen title insurance cover:
A previous owner's ex-spouse shows up claiming they never properly signed away their ownership rights in a divorce. Without title insurance, you'd have to hire an attorney and potentially pay them to resolve their claim.
An old contractor puts a lien on the property for unpaid work from before you owned the home. The lien paperwork was filed incorrectly and didn't show up in our original search, but now it's your problem to solve – unless you have title insurance.
Someone discovers that a boundary line was surveyed wrong decades ago, and part of your property actually belongs to your neighbor. Title insurance covers your legal costs and any financial loss.
Here in Brown County, we see some title issues that are more common in rural areas. Properties with acreage sometimes have old easements for utilities or access roads that weren't properly documented. Historic properties in Nashville might have deed restrictions from previous owners that affect what you can do with your land.
We've handled closings where mineral rights were separated from surface rights years ago, or where old family properties had inheritance issues that took time to surface. These aren't common problems, but when they happen, title insurance is what stands between you and a major financial headache.
Your owner's title insurance policy costs a one-time fee at closing based on your home's purchase price. For most homes in Brown County, that's typically a few hundred to around a thousand dollars.
Compare that to what you could face without it: attorney fees, court costs, and potentially losing part of your property or having to pay someone else's old debts. Even a minor title issue can cost thousands of dollars to resolve.
More importantly, your coverage amount stays the same as your home's value when you bought it. So if you purchased your home for $200,000 and it's now worth $300,000, you're still covered for the original $200,000. It's not perfect, but it's significant protection for a one-time cost.
Most homeowners never need to file a title insurance claim, and that's good news. But when problems do arise, the process is straightforward.
If someone challenges your ownership or puts a claim against your property based on something that happened before you owned it, you contact your title insurance company. They handle the legal work and cover the costs to defend your ownership.
The key is keeping that policy document somewhere safe. We give you a copy at closing, but if you ever need to file a claim, you'll need to reference your policy number and coverage details.
At our closing table, we explain title insurance to every buyer because we've seen what happens when people need it and don't have it. The peace of mind alone is worth the one-time cost.
Your home is likely your largest investment. Title insurance protects that investment against problems you couldn't have known about when you bought the property. It's the safety net that lets you truly relax and enjoy homeownership.
That document you filed away after closing might never be needed. But if it is, you'll be grateful you have it.