A Guide for Homeowners to Stay Safe from Home Title Theft

Posted on: Nov 28, 2022 | | Written by:

A Guide for Homeowners to Stay Safe from Home Title Theft

Published on November 25, 2022. EST READ TIME: 3 minutes

How to Protect Yourself from Home Title Theft – Home Insurance

Buying a house is a dream that a lot of us look forward to. A house lets you make a space yours and at the same time provides you with a lot of security and stability. The property is also a great addition to your assets and long-term financial plans as well. Given the fact that it is one of the biggest investments that you are going to make, securing it with a home insurance plan is essential.

There are several threats and risks that homeowners face, in the form of theft, natural calamities, fire, etc. However, there is another risk that might unsettle homeowners a bit. It is home title theft. Home title theft is a type of identity theft and is a growing concern for a lot of homeowners.

What is Home Title Theft?

Home title theft is also known as fraud theft. It usually takes place when someone takes your personal information and uses it to transfer the title of the house to their name. Once that is complete, they can either use the documents to rent the property out or even sell it. The stolen information can also be used to take a mortgage on the property as well. And all of this can take place without the knowledge of the homeowner.

What are the Consequences of Stolen Title or Deed?

In the event that someone has stolen the title of your property or its deed, they can pose as you. This then allows them to transfer the ownership to the name of someone else, even without your knowledge. There are a lot of possibilities that can take place if the deed or title is stolen. The people who have stolen your title or deed can borrow against your property. This is a common occurrence with property owners who are seniors. If there aren’t any loans against the property, they can take additional loans as well. This usually takes place because some homeowners aren’t too careful with their bills and documents. If they do not stay on that property, there are chances of someone else getting their hands on the documents and misusing them. As a homeowner, you need to pay additional attention to ensure bills and tax documents do not fall into the wrong hands. In the absolute worst-case scenario, the fraudsters can even use the documents to sell the property to someone else. This can leave behind a trail of victims. From the original owner of the house to the new buyer and the lender, having property insurance can prove to be quite handy in such situations.

Is Home Title Theft Common?

The good part is that title theft isn’t as common as one might think. They are rather rare. However, you should not let your guard down. Securing your property with homeowners insurance is crucial, as it offers a bunch of protection.

Here are some of the criteria that fraudsters look at before attempting a title theft.

1. If a property or house is not frequently visited or is vacant most of the time.

2. If a house or property is owned by someone who can be a bit vulnerable, such as the elderly or challenged in some form.

3. If the property or house is entirely paid off and there aren’t any existing mortgages.

Protect Yourself from Title Theft

Even though the occurrence of such crimes is a bit low, as a homeowner, you should never let your guard down. There are a few simple measures with the help of which you can improve the safety of your property or house. Buying a property insurance is one of them.

As a responsible homeowner, always ensure that you are on top of all bills, tax statements and any other mail that might be coming your way. This will largely keep fraudsters at bay since they would not have any direct access to the documents. Also, it is a good habit to keep checking your credit history and other government records at regular intervals. If there is any sort of fraud, you will be easily able to trace with these. If your home insurance policy offers liability coverage, it might offer you protection against such instances.

Things to Do If You are a Victim of Home Title Theft

If you believe that either you or any that you know has been a victim of title or deed fraud, you can try to freeze your credit line in the first place. This will minimize the extent of the damage caused by the fraud. Secondly, you can reach out to the local government entities to inquire about any transactions on your property and inform the same to local police.

Why Should You Buy Homeowners Insurance Plan?

Owning a home can give you a lot of stability and peace of mind. However, it does with its own set of risks and threats. Buying homeowners insurance is one of the best ways to secure your house from such unforeseen threats. Here are some reasons, why you must opt for a home insurance policy.

1. The policy does not only offer coverage for your house. It also offers coverage for the garage, fence, shed and even deck.

2. The plan can protect your house and its belongings from natural calamities such as earthquakes, landslides, cyclones, etc. Natural calamities can damage your house to a large extent. And in such cases, the cost of repairs can be quite extensive. However, the policy will compensate you for any repairs due to natural calamities.

3. Unlike what a lot of people think, buying a home insurance policy isn’t all that expensive. When you consider the amount of protection that it offers along with the tenure of the policy, it is rather affordable.

4. If there is a theft in your house, the policy will compensate for the replacement of the belonging that was insured. Depending on the policy that you have opted for, you can even ask for the replacement of the belongings, rather than asking for compensation.

5. More importantly, the plan will ensure you do not have a lot of worries when it comes to owning the house. Even if there are any unforeseen issues, the policy will compensate for the same. Thereby making the repairs and replacements a little less of a worry.

Conclusion

Home title theft can be a serious issue if left unattended. The above is some of the measures which can help you safeguard your house. It is of utmost importance to keep your documents in check and not let them get into the hands of unknown people. And for added safety, a home insurance plan is highly recommended. By paying a small premium, you can secure your house and your belongings as well.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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