How Long Does Title Insurance Last The longevity of title insurance and the necessity for renewal often raise questions for homeowners. After all, even the joy of being a new homeowner can encounter bumps along the way. Consider a scenario where you’ve just settled into your new home, only to discover that the charming pergola you admired was constructed without the required council approval, leading to unforeseen expenses for its removal.
Title insurance serves as a safeguard against such unexpected surprises, but it’s essential to understand how long it lasts, whether it needs renewal, and the right timing for obtaining it.
Do You Need to Renew Title Insurance?
To begin with, title insurance does not require renewal. It offers a cost-effective, one-time premium that provides coverage for a wide range of property-related risks. It’s the type of insurance most of us wish we could have for various aspects of life.
Moreover, title insurance doesn’t limit itself to houses alone; it extends its protective shield to apartments, townhouses, and even vacant land.
What’s the Duration of Title Insurance?
While it doesn’t last forever, title insurance comes remarkably close. It remains in effect for the entire duration that you own the property. But you might wonder why you’d need title insurance to cover you for an extended period after the settlement.
Occasionally, issues can remain concealed for quite some time. For instance:
- One of our clients received a notification from the council regarding unauthorized structures on their property, a staggering five years after the initial home purchase. First Title accepted the claim, allowing them to address the necessary corrections without resorting to demolishing parts of their home.
- Another client faced a council notice four years after settlement, revealing that their carport, garage, dwelling extension, and shed had been constructed without permits. Engaging a building surveyor uncovered the need for rectification work on the garage and shed, along with the requirement for the demolition of the carport and dwelling additions. First Title accepted the claim, covering the expenses of reports and building works within the policy limit.
When Should You Purchase Title Insurance?
Most individuals acquire title insurance at the time of settlement. However, if you’re already a property owner, there’s no need to fret about missing out on this valuable protection. You can purchase title insurance post-settlement or even before you acquire the property. As illustrated, title-related issues may arise years into your ownership, making it never too late to secure title insurance. We may request additional documents, such as a title search, rates notice, and documentation of known risks, to set you on the path to obtaining the coverage you require.
Whether you currently own property or are on the verge of a purchase, consider requesting title insurance today to enjoy long-lasting peace of mind.