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The Importance of Title Insurance for Newly Built Homes

When purchasing a newly constructed home, it may seem unnecessary to consider title insurance. After all, the home itself has no title history. However, title insurance is still recommended for newly constructed homes to protect against any potential issues related to the property's ownership and history.

When a new home is built on unimproved land, there may have been many prior owners of the property. With those prior ownerships comes the uncertainty of a clear chain of title. Additionally, there may be outstanding obligations to contractors who worked on the home construction, which can jeopardize clear title to the property. In this situation, title insurance can provide protection for the homeowner.

Unlike home insurance and car insurance, which focus on possible future hazards, title insurance safeguards against loss from hazards and defects already existing in the past. A First American Title Owner's Policy offers the best protection from risk exposure associated with the purchase of a new home. We highly recommend the Eagle Policy which gives a comprehensive coverage for matters that could jeopardize your ownership in the future!

When a new home is financed, lenders almost always require that a lender's policy of title insurance be purchased, which protects the lender. This coverage does not offer protection for your investment. Only an Owner's Policy helps protect your interests. In fact, a bank's loan policy only covers the amount of the mortgage and only lasts until that debt is settled. An Owner's Policy offers you protection for as long as you or your heirs have an interest in the property.

In conclusion, it's essential to consider title insurance for newly constructed homes. Even though the home itself has no title history, the land it's built on may have complicated ownership and history. Purchasing an Owner's Policy of title insurance is a smart investment that offers long-term protection and peace of mind for you and your heirs.

If you're in the process of purchasing a newly constructed home or any property, protect your investment with title insurance. Contact Skyway Title Services to learn more and get the assistance you need to ensure a smooth and secure real estate transaction.


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