Title insurance

If you've ever watched daytime television during the week, you've probably seen the countless insurance advertisements that fill the commercial breaks. However, there's one type of insurance that is less well known in Australia and doesn't get any airtime. I'm talking about title insurance, and it's well worth considering whether you might need it.

You can purchase title insurance whether you are in the process of buying a property or already own one. It protects you against things such as:

• incorrect boundaries (you discover part of your home, driveway or garage is actually on your neighbour's land, or their home on your land)

• illegal building work (a shed built without a permit that the council insists you tear down)

• fraud / forgery / identity theft

• planning and title defects (your house doesn't meet the requirements of the covenant)

• outstanding rates / taxes which should have been paid at settlement but weren't (if the vendor goes bankrupt after settlement, they're not going to pay it)

These are just some examples of risks you may face as the owner of a property. Title insurance will generally cover your losses of at least up to $160,000 (where the issue is defective building work) or potentially up to twice the purchase price of the property.

You pay the title insurance premium once only (no annual / ongoing fees), and if you need to make a claim there's no excess. Cover starts around $400 and goes up with the value of the property.

You are not required to have title insurance but it is a worthwhile investment for peace of mind, particularly if you are buying in an older area where these is often more chance of incorrect boundaries, or sometimes in a newer area where more recent (and sometimes non-compliant) building work has taken place.

For an exact estimate of the premium payable, details of policy exclusions and other information, you can check out Stewart Title or First Title, or have a look at the information sheets below.

If you need more information or you're in the process of buying property and would like me to assist you with taking out title insurance, please call or email me to discuss.