Home Title Lock Insurance: Is It Really Protecting You?



If you’ve seen ads for home title lock insurance, they might have left you feeling concerned. The ads claim thieves can steal the title to your home, but then suggest you buy title lock insurance to supposedly prevent it. Before you start to panic, let’s take a closer look.

Title Lock Insurance Isn’t What You Think

First off, "title lock insurance" is not the same as title insurance. If you’ve bought a home, you might remember purchasing title insurance during the process. Title insurance protects you against challenges to your ownership, like an unknown lien on your property. However, "title lock insurance" is different—and here’s the catch: it’s not actually insurance at all.

Instead, it’s a monitoring service that claims to watch your deed for any changes related to title fraud. The problem is, it doesn’t prevent title theft. You’d only find out after someone fraudulently transferred your title. So, despite the name, it’s not much of a "lock."

What is Title Fraud?

Title fraud is essentially a form of identity theft, where someone impersonates you and transfers your property deed to someone else. But here’s the thing: title lock services (again, not insurance) won’t stop this from happening.

The good news is, you can check your title for free by visiting your state’s land records office. Some areas even offer free alert systems that notify you of any legal changes related to your property, like a transfer of ownership. No need for a costly monitoring service!

How to Protect Yourself

While title lock services aren’t your best bet, there are other ways to protect yourself from identity theft:

  1. Check Your Credit Report: You can check your credit report for free at AnnualCreditReport.com. Each of the three major credit bureaus lets you pull weekly reports at no cost.

  2. Monitor Your Bills: If your utility bills stop arriving unexpectedly, it could be a red flag. Contact your utility provider to investigate.

  3. Get Help If Needed: If you suspect identity theft, visit IdentityTheft.gov for a free, personalized recovery plan.

And don’t forget, if you ever spot a scam, you can report it to the Federal Trade Commission (FTC) to help protect others.

In short, while title lock insurance sounds like a smart safeguard, it’s not necessary for most homeowners. Stick to monitoring your credit and keeping an eye on your property records—your peace of mind doesn’t have to come at a steep price!

Original article from an official US government website: Home title lock insurance? Not a lock at all | Consumer Advice (ftc.gov) 

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