People have the future in mind when they buy a house and purchase homeowners title insurance to help protect their future. As a homeowner, there is a need to protect the property against the past and any future occurrences. For many owners, their property is their largest investment—and is worth saving! Let’s take a look at three reasons why you need title insurance.

Liens for Unpaid Taxes

A lien on a property may disqualify a property from being sold. Property liens are legal notices attached to a property title because of unpaid debts. This can make buying a home a lot more complicated. A lien means that before you move forward with your new home's purchasing aspect, you need to research any liens against the property or home.

Current Lawsuits or Mistakes in Records

Does the future look bleak for the property you're about to purchase? It's a good idea to run a background check to investigate any lawsuits or disputes in records. It's a common problem that the records on your home are not exactly up to date. When a home is passed through families and generations, there could be errors in the property area's actual square footage or measurements.

Encroachments

Encroachment on the property violates the original terms listed on the deed. An encroachment occurs when a neighbor builds something either on or extends onto your property. An encroachment is a problem because it impedes the property's use for the person whose land is infringed upon.

With proof of a clear title, you will find a much smoother time buying a home. When you purchase title insurance, you'll also benefit from the peace of mind knowing you'll be protected from financial loss from covered claims. If you decide to buy a property, title insurance can protect you from financial loss if the sale falls through due to a covered defect in the property's title.