When purchasing a home, most buyers are focused on things like the mortgage rate, home inspections, and closing costs. But there’s another essential part of any real estate transaction that often goes overlooked: title insurance. If you’re in Missouri—especially in Camden, Miller, or Morgan Counties—working with an experienced title company like Arrowhead Title can make all the difference in ensuring you’re protected through this often-complex process. Here’s what title insurance is, why it matters, and how it can protect you as a homeowner or investor in the Lake of the Ozarks region.
What Is Title Insurance?
Title insurance protects homebuyers and lenders against potential issues or “defects” with the property’s title, or legal ownership. When a title company like Arrowhead Title issues a policy, it guarantees that thorough research has been conducted to ensure there are no undisclosed claims, liens, or disputes on the property. If a problem with the title does come up after you’ve purchased the property, your title insurance policy can cover the legal costs or financial losses you might face.
Title issues can arise from a range of causes, such as:
- Undiscovered liens: Previous owners may have left unpaid taxes or debts attached to the property.
- Unfiled documents or paperwork errors: Mistakes in record-keeping or property descriptions can cause ownership confusion.
- Heir claims: Unknown heirs or other parties could come forward with a legal right to claim the property.
- Fraud or forgery: Cases of fraudulent transactions or forged documents could challenge the legitimacy of the title.
Types of Title Insurance: Owner’s and Lender’s Policies
When you buy a home, you will typically encounter two types of title insurance: owner’s title insurance and lender’s title insurance. Each type protects a different party in the transaction.
- Owner’s Title Insurance
This policy protects the buyer’s ownership rights in the property. It covers financial losses if a title defect or claim arises after closing. By purchasing an owner’s policy, you’re ensuring that your home—and your investment in it—are legally secure. - Lender’s Title Insurance
Lenders require title insurance as part of the mortgage process to protect their financial interest in the property. This type of policy only protects the lender for the amount they’ve loaned to the buyer. However, it does not provide coverage for the buyer’s equity in the home. For this reason, purchasing owner’s title insurance is essential to safeguard your investment fully.
Why You Need Title Insurance: Protection and Peace of Mind
Real estate transactions are some of the most significant financial investments people make, and each comes with its own set of risks. Title insurance mitigates these risks by providing buyers with protection and peace of mind against unknown claims that could threaten their ownership. Unlike other types of insurance, title insurance is paid for with a one-time premium at closing. From that point on, your policy will protect you as long as you or your heirs have an interest in the property.
Title insurance can help protect you from:
- Unexpected liens or unpaid debts: If a previous owner has left unpaid property taxes or contractor bills, a title insurance policy can cover these costs.
- Legal defense costs: If someone challenges your ownership, title insurance can help cover legal fees for defending your title.
- Property loss or damage due to title defects: In cases where you lose ownership due to a defect, title insurance can cover financial losses, depending on the specifics of your policy.
Why Choose Arrowhead Title for Your Title Insurance Needs?
Since 1984, Arrowhead Title has been serving the Lake of the Ozarks area with trusted expertise in title and settlement services. As an issuing agent for Stewart Title Guaranty Company, we bring industry-leading standards in title insurance to protect our clients fully. Our computerized tract index services in Camden and Miller Counties, and our detailed records of public indexes in Morgan County, help us deliver accurate and reliable title searches, minimizing the risk of unexpected issues for buyers and sellers alike.
At Arrowhead Title, we understand the importance of efficient, reliable service and are committed to protecting you through every step of your transaction. By partnering with us, you’ll benefit from nearly 40 years of experience, local knowledge, and a commitment to ensuring peace of mind for every property transaction.
Protect Your Investment with Title Insurance
Whether you’re a first-time homebuyer or a seasoned real estate investor, title insurance is a key component of a safe and secure transaction. Arrowhead Title is here to help you navigate the process, ensuring that your title is free and clear of any issues before closing day. Contact us today to learn more about how we can support you through your real estate journey in Camden, Miller, and Morgan Counties, and secure your investment with confidence.