How To Get Title Insurance
Definition of "How to get title insurance"
You’ve read all about how to stop a lien on your property, which convinced yourself that title insurance is a must. But now you’re wondering how to get title insurance. Where do you buy one? Is it something you must ask your real estate agent?
Well, you can, but he will probably answer what we’re about to answer, as real estate agents do not sell title insurance: whenever you enter the closing process and sign the purchase agreement, your escrow agent will launch the process of getting it (if you want to). The escrow agent or your attorney will choose which of the five major US title insurance companies will underwrite your policy.
How much will it cost to get title insurance? Differently from other types of insurance, with title insurance you typically pay a one-time fee of about $1,000 – but this amount can change from state-to-state. FYI, this fee is typically included in the closing costs, so that’s why the escrow agent is the one who asks you if it should be included. Another thing that will be asked to you is if you want both kinds of title insurance: the owner’s policy and the lender’s policy.
The Lender’s policy is typically required by most lenders in order to secure your mortgage. It’s a type of insurance for them to continue getting their loan amortization should a problem with your title arrive. And the owner’s policy is what most people are referring to when they talk about title insurance: in the event of a title problem, they cover the home buyer’s costs with the problem.
Fun fact: the normal would be, of course, that the home buyer pays for both kinds of title insurances, right? However, there are some states where it’s either negotiable who gets to pay, or the home seller is the one who pays for these insurance fees. The thinking behind it is that the home seller should be the one giving away a clean title, so he’s the one who should be responsible for covering everyone should a problem arise.
So, as you can see, it’s pretty simple to learn how to get title insurance. What’s very important is that you do get one. Just like that old phrase says: better be late than sorry!
Popular Insurance Questions
Popular Insurance Glossary Terms
Provision of a property insurance policy which covers conditions usually present in a particular location. For example, there is an inherent risk of explosion in a flour mill. ...
Bill that allows the insurance company to include a clause in its policy that permits the policyholder to make a policy loan at a variable interest rate on new policies. Under this clause, ...
Coverage in which individuals who cannot obtain conventional automobile liability insurance, usually because of adverse driving records, are placed in a residual insurance market. Insurance ...
Estate under the legal and administrative guidance of both the surety and the fiduciary. Any actions on the part of the estate requires the signatures of both in order to reduce the chances ...
Allocation of monetary resources to equities. ...
Combination of several policies with each adding an additional layer or limit of coverage above the limits of the policy that comes before it. For example, Policy A adds $100,000, then ...
Person, business, or organization specified as the insured (s) in a property or liability insurance policy. In some instances, the policy provides broader coverage to persons other than ...
Coverage for property damage or destruction of an insured's property and liability exposure of an insured for damage or destruction of someone else's property under his or her care, ...
Statutory liabilities minus the interest MAINTENANCE RESERVE minus the ASSET VALUATION RESERVE. ...
Have a question or comment?
We're here to help.