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
Agent who is licensed and who markets and services insurance policies in a state in which he or she is not domiciled. ...
Coverage following the same structure as group term, the significant difference being that premiums go toward the purchase of permanent insurance instead of term insurance. The employee has ...
One that combines the two forms of ownership, stock and mutual. A stock insurance company is owned by stockholders, whereas a mutual insurance company is owned by its policyholders. A mixed ...
Liability insurance that provides coverage for the insured in the event the insured's negligent acts and/or omissions result in libel, slander, invasion of privacy, or false arrest suit. ...
Coverage of the employer for all employees on a blanket basis, with the maximum limit of coverage applied to any one loss without regard for the number of employees involved. Both ...
Same as term Buy-Back Deductible: deductible eliminated through the payment of an additional premium, resulting in first-dollar coverage under the policy. ...
Liability or loss resulting from an accident. Such liability or losses are covered under such policies as the following: business automobile policy (BAP), business property and liability ...
Clause in some current ASSUMPTION WHOLE LIFE INSURANCE policies Such as UNIVERSAL LIFE insurance that allows unscheduled premiums to be paid at any time prior to the policy's maturity date, ...
Contract first written in 1918 that provided the basis for modern-day property insurance, both personal and commercial. Forms and endorsements must be added to complete the policy and ...
Have a question or comment?
We're here to help.