Can I Buy Title Insurance After Closing?

When purchasing a home, title insurance is often recommended or required to protect against potential ownership disputes, liens, or claims against the property. However, what happens if you don’t purchase title insurance at closing? Can you still get it afterward? The short answer is yes, but there are essential considerations to remember.

Understanding Title Insurance

Title-insurance protects homeowners and lenders from financial losses related to title defects, such as fraud, undisclosed heirs, unpaid liens, or recording errors. There are two types of these insurance policies:

• Lender’s Title-Insurance: Most mortgage lenders require this policy to protect the lender’s interest in the property.
• Owner’s Title Ins: This optional policy protects the homeowner’s equity and ownership rights.

Buying Title-Insurance After Closing

If you didn’t purchase an owner’s title-insurance policy at closing, you may still be able to buy one later. Here’s what you need to know:

1. It May Be More Complicated

Purchasing title ins after closing is possible but may involve a more thorough title examination. Title companies will want to ensure no new issues have arisen since the closing date.

2. Costs May Vary

Title-insurance is typically a one-time fee paid at closing. If you purchase it later, the cost could differ from what it would have been at closing. Some title companies may charge additional fees for issuing a policy post-closing.

3. Coverage Considerations

If a title issue arises after closing and before you secure a insurance policy, it may not be covered. Title-insurance only protects against issues before the policy is issued, so any claims or disputes that develop after your purchase might not be covered.

4. State and Lender Regulations

In some states, title-insurance must be purchased at or near the time of closing. Additionally, if you took out a mortgage, your lender likely required a lender’s title-insurance policy. If you refinance in the future, you may need to purchase a new lender’s policy, and that could be a good opportunity to secure an owner’s policy if you didn’t initially.

When Should You Get This Insurance?

Ideally, this insurance should be purchased at closing to ensure complete protection from the start of homeownership. However, if you didn’t buy it, then, you should consider getting it as soon as possible—especially if:

• You recently purchased a home without title insurance and are unsure of the title’s history.
• You purchased a property in a cash transaction without requiring title-insurance.
• You inherited a home and want to ensure your ownership is protected.

Contact Us

While it’s best to purchase title-insurance at closing, you can still buy an owner’s policy afterward. However, delays can leave you vulnerable to title disputes, liens, or fraud. If you’re considering purchasing this insurance post-closing, contact a insurance provider to discuss your options and ensure your homeownership is secure.

For a homeowners insurance quote, contact us today by calling (541) 318-8835 or click here to connect with us online.