Can Title Insurance Be Transferred?

Are you in the process of transferring property or planning or transferring property? One of the most common questions people ask is if their title insurance can be transferred. Ultimately this is something that every real estate investor will have to deal with at some point in their investing career. Keep reading to find out more about title insurance.

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Can it be Transferred?

In short, no. Title insurance cannot be transferred once it is bought for a property. That is because it serves as a lifetime guarantee to a legal title unless that title changes. Since you paid in full for the title insurance during closing costs, it will always remain yours and cannot transfer. This one-time purchase protects your ownership over a property from past liens and new claims, and that is why it can only be purchased during the closing meeting of a home transfer. 

Can Your Spouse be Added to an Existing Policy?

The good news is that you can add your spouse to an existing title insurance policy. If you decide to add them or an heir to an existing policy, the policy will not change, and your property will remain protected against past liens and new claims. You and your spouse will always be protected from everything listed under the policy even if you decide later to not live in the property. You can also remove a spouse from a policy.

Do Heirs or Dependents Inherit Your Title Insurance Policy?

Title insurance can be inherited along with the property. However, title insurance cannot be gifted. Once the owner of the property dies, title insurance will continue to protect heirs or other legal beneficiaries from title claims on the property. It’s important to note that title insurance does not automatically transfer with a title if it is gifted or sold to a family member. 

When Would You Need New Title Insurance?

In most cases, title insurance remains unwavering. However, one of the very few instances you would need new title insurance is if you place a quitclaim on a residence for an LLC you do not fully own. If that is the case, you may need to alter your existing title insurance policy or buy a new one. 

Comprehensive Texas Title Insurance

Need to purchase title insurance that will thoroughly protect you and your property? Look no further than Armour Title of Texas. We provide a wide range of Texas Title insurance and will ensure that your property is forever protected.
Contact us now to receive a free title quote.