3 Things to Consider When Shopping for Title Insurance

Jun 27, 2017


Title insurance is an important measure of protection when purchasing a home. It is a guarantee to you, the buyer, that there are no claims against the house for any reason. There will be no great-nephew of past owners of the property showing up a few years later with a deed saying the house actually belongs to them. Having title insurance will certainly make it easier to sleep peacefully in your new home.

So what should you consider when choosing a title insurance company?

First, you as the home buyer want to make sure you will have a clear title. Your title insurer should do a complete search on any fraudulent deeds, conflicting wills, missing heirs, or outstanding liens on the property you have chosen to purchase. The clear title is present to your attorney for examination.

Also, is important that the title insurance is licensed by the state and sends a representative to the closing who can prepare the closing documents, issue the title insurance, disburse funds and keep the closing process. A closer who miscalculates or mishandles documents can make a closing more difficult.

And lastly, you should consider the cost. Title insurance policies can vary by title agency. The premiums can cost from $1.75 to $9.00 per $1,000 of the selling price. So title insurance for a home with a purchase price of $200,000 could cost between $350 and $1,800.

Title insurance also protects the mortgage company and the seller. With the proper insurance coverage, all parties can be assured of a clear and transferable deed during the closing.

Consider these tips when shopping for title insurance and contact Beaches Title for all of your title service needs.