What exactly is title insurance? It’s a type of insurance policy that protects–you guessed it–an owner’s title, or ownership rights, to their property. Okay, but you’re paying for the property and signing the contract–why do you also need title insurance? Purchasing a home is typically one of the largest investments a person makes in their lifetime. Title insurance protects the policyholder from the possibility that something in a property’s past could come back to impact future ownership rights. This could include unsatisfied liens, unpaid property taxes and fraud, just to name a few. Title insurance protects against these types of potential problems and more.
Before title insurance is issued, a search is performed on a property’s title history to uncover any defects. If you’re like most people and are taking out a mortgage to finance your property, purchasing title insurance likely isn’t optional—it’s a requirement. A “lender’s policy” insures the lender for the value of its investment in your property, typically, the loan amount. The “owner’s policy” protects the owner(s) by insuring up to the full sale price of the property. When available, an enhanced title policy entitles the owner(s) to protect an increase in property value and offers coverage and increased for many scenarios not covered by a basic policy.
Unlike other forms of insurance, title insurance is billed in a single one-time premium, paid at the time you purchase your property. The premium entities you, and your successors and/or heirs, to a valid title policy for as long as you (or they) own the property. Pricing for title insurance is regulated by the state. With few exceptions, you should pay the same rate for title insurance (which is calculated based on your purchase price) no matter where you buy it. Beware, this does not mean that you will be charged the same price at the time of closing for title-related services by all title companies. Some title companies charge unnecessary and outlandish fees. Rest assured, we’re here to help you, not to take advantage of you!
We just get it.
We live and work in Pennsylvania and understand how important it is to deal with straightforward people who know what they’re doing. We are licensed title agents who will give you the premium, prompt service you won’t find anywhere else. We have decades of experience helping home buyers protect themselves with title insurance.
Need info fast? We’ve created a title insurance quote calculator to help you estimate your costs. Overwhelmed and need more concrete answers? You’re just a phone call away from speaking to an experienced agent who can answer any title insurance question. Ready to buy? We’ll walk you through the process and get you started.
Disclaimer: Legalty Transfer is not a law firm. If you need legal services, contact Legalty Law.