Covenant Title

The Article

When you purchase a home, you’re handed a stack of closing documents to keep. These documents include a title, purchase agreement, seller disclosures, and home inspection reports. You should also have a copy of your title insurance policy.

Some homeowners file their policy and find it years later, unsure of whether they need to shred it or continue to keep it tucked away in a drawer. Some documents, if they expire, can be chunked. Something that lasts until you sell your home, like title insurance, should be filed with other important documents.

Disposing of the policy after you sell

Your title insurance policy is in effect as long as you own the property. The policy is valid for the length of your home ownership and will help you if a title problem occurs. Hold on to the document as long as you own the property. This will protect you, and your heirs, from title risks.

Why you should file your policy

If you have an issue and need to contact your title insurer, your policy will give you all the information you need. You don’t want to be stuck without knowing who to contact when you need help, so keep track of your policy. The great thing about title insurance is after you pay the one-time premium, you can stick the policy aside since you don’t have to worry about keeping up with payments. For this reason, many people misplace their policy.

As long as you know which title company you worked with, you can get another copy of your policy if you need to. Keep in mind that after you sell your home, it is best to hold on to old documents for a few years. You can dispose of most documents in a shredder after a few years time.

Understanding the importance of title insurance

Your title insurance policy is as important as the other documents you were given during the closing process. Title insurance could keep you from massive legal fees due to a title dispute.

Obtaining title insurance is a simple and affordable process. If you have questions about title insurance, contact Covenant Title Company, a subsidiary of FirstBank Southwest. As an independent insurance agent, we have underwriter relationships with Alliant National Title Insurance Company and National Investors Title Insurance Company. We also offer closing services. If you have questions about the closing process, call Julie Lamm at (806) 354 -5283 or Contact Us by email.

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