What is Home Title Insurance and Why Is It Important?

Home title insurance protects property owners from financial loss due to title defects or legal issues related to property ownership. It’s a one-time cost, typically paid at the time of purchase, and provides coverage for as long as the owner holds the property.

While not mandatory, it reduces your risks of ownership.

What Title Insurance Covers

• Title defects: Issues with the legal ownership of the property that weren’t discovered during the initial search.
• Fraud and forgery: Protecting against fraudulent claims or changes to the title.
• Boundary disputes: Addressing issues related to property boundaries, including encroachments or incorrect dimensions.
• Unapproved building works: Covering structures or renovations built without proper council approval.
• Errors in public records: Protecting against mistakes or omissions in government records related to the property.
• Outstanding rates and taxes: Covering unpaid property taxes or levies.

Why It’s Important

• Peace of mind
  Title insurance protects you against unforeseen risks of ownership.
• Financial protection
  It can cover legal costs and expenses associated with defending your ownership rights or resolving title defects.
• Cost-effective
  Whilst its premium is not a large expense, the potential costs associated with title defects can be substantial.

Key Differences from Other Insurance

• Once-off premium
  Title insurance has a once-off premium that lasts for the duration of your ownership of the property.
• Focus on ownership
  It deals with legal and ownership-related risks, and not physical damage or loss.
• Long-term protection
  It continues to protect you from the initial purchase, unlike other insurance that may expire or require renewal.

In Victoria, obtaining title insurance is recommended by conveyancers and legal professionals.

If you have more questions about home title insurance and other conveyancing related topics, don’t hesitate to contact Glenferrie Conveyancing on (03) 9815 2351 for more information.