Home title lock insurance? Not a lock at all

If you’ve 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. Stop. Take a 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 house. It protects you against challenges to the title, like a lien you didn’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. You’d only find out AFTER your title got transferred to someone else without your authorization. So much for the 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 changes, 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 free weekly credit reports online.
• Monitor your bills. If you suddenly stop receiving utility bills, that may be a sign of identity theft. If you’re worried, contact your utility company directly.
• Get help. If you suspect identity theft, go to IdentityTheft.gov for a free, personalized recovery plan.

And if you spot a scam, tell the FTC.