6 Questions to Ask About Title Insurance

Mar 28, 2018

Title insurance is one of the most important forms of protection for both buyers and sellers during a real estate transaction. Depending on the specific title insurance policy you choose, the insurance will help cover damages that arise because of disputes.

Making sure real estate transactions involve a free and clear title is vitally important. Six questions about title insurance are vitally important for any homeowner:

1. Who is my Most Reputable Source?
Between the lender, the real estate agent, and the seller, you’ll receive the best advice from the lender. Always bear in mind the fact they have a large financial stake in the property just as you do.

2. Do I Need to Research the Insurer’s Soundness?
Even though insurance companies should be financially stable, they do go out of business sometimes. Online reviews and ratings on sites like A.M. Best Co., Demotech, Inc. and Fitch Ratings can help.

3. Is There Any Price Regulation?
Prices may vary substantially in areas without much regulation. However, there are a few things to keep in mind:

  • Courier and wire transaction fees may vary
  • It’s helpful to get the total price in light of these issues
  • Check with your state insurance department about any concerns

4. What If The Seller’s Pushing a Certain Company?
You have a right to choose the company you wish to work with during the transaction. Bear in mind that a seller who wants to use the same company from years ago might be getting inaccurate information.

5. What Type of Coverage Do I Need?
Most insurance policies are standard. They include contingencies like forgery and spousal claims, as well as restriction endorsements and adjustable-rate mortgage coverage.

6. Who Typically Pays?
The state or county determines who pays for the policy. You can still negotiate, and you might enjoy a discount if you get the lender’s and owner’s policies from the same place.

Title insurance will help protect you from the unforeseen, contact Beaches Title Services today for your needs.