Do You Really Need Title Insurance When You Buy A Home

Performance Property Real Estate Question

Q: We are buying our first home. There are a lot more costs than we anticipated. Do we need to pay for regular insurance and title insurance also? Andrea, Montclair, NJ

A: A title insurance policy protects homeowners from third-party claims on their property that could arise potentially from a contractor that claims they didn’t get paid for work they did on the home or from an heir to the estate of someone who previously owned the home. While title insurance is not mandatory by New Jersey, most lenders require that a home buyer purchase title insurance in order to protect the lender’s investment in the home. So, if you’re getting a mortgage to buy your home you probably don’t have a choice but regardless, it’s a good idea to pay for title insurance to protect what’s likely to be your biggest asset—your home. Thanks for your question, Andrea.

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