Home Title Lock Insurance? Not a Lock at All
If you have seen ads for home title lock insurance, they might have you
worried. After all, the ads say thieves can steal the title to your home. But
then the ads tell you to buy “title lock insurance” to supposedly prevent
home title theft. Take a deep breath… It’s just a ploy to scare you
First, know that “title lock insurance” is NOT title insurance. If you’re a
homeowner, you might remember buying title insurance when you first
bought your home. Title Insurance protects you against challenges to the
title, like a lien you don’t know about. But “title lock insurance” is different
– and it’s not insurance at all… Instead, it’s a service that ‘claims’ to
monitor your deed to protect you against title fraud. However, you’d only
find out AFTER your title got transferred to someone else without your
authorization. So much for a lock…
Title fraud is identity theft: someone pretends to be you and transfers your
deed to someone else. Title lock insurance (again: not a lock, not
insurance) wouldn’t stop that. And you can check your title for FREE with
your state’s land records office, and some areas even have a free
notification program that allows you to sign up for alerts about any legal
challenges, like ownership of a property.
Here are some other steps you can take to protect yourself from identity
thieves:
Check your credit report. Check your credit report for free through
AnnualCreditReport.com. Each of the nationwide credit bureaus lets
you get a free weekly credit report online.
Monitor your bills. If you suddenly stop receiving utility bills, that
might be a sign of identity theft. If you’re worried, contact your
utility company.
Get help. If you suspect identity theft, go to IdentityTheft.gov for
free, personalized recovery plan.
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