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Top 5 Key Considerations When Taking an Owner's Title Insurance

Friday, May 15, 2020

You are finally about to buy your very first home. As exciting as this can be, it can also come with some stress. There are things you must consider before buying an Owner's Title Insurance policy.

To take away some of the stress of buying a new home, check out our guide. Here are 5 things to consider when taking an Owner's Title Insurance:

1. Regulated Prices

In a lot of states, title insurance prices are regulated. This means each company has a similar price range.

Those looking for Owner's Title Insurance should look for quality. Quality of insurance and quality of the title search are two important aspects to consider.

In the few states where insurance prices are regulated, fees can add up. Be sure to ask about these fees to know how much the full cost will be.

2. Coverage

Your Owner's Title Insurance should protect you in some cases. How much coverage you have is especially important for home title insurance.

Typically your owner's title policy will cover fraud, forgery, spousal claims, and more. If you need additional coverage, you may be looking at a bigger cost.

Know what coverages you need when you are looking to buy the Owner's Title Insurance. Your lender may require extra insurance.

3. Cost

There are two people responsible for paying the policies, the buyer and the lender. The general rules about this vary depending on the state or county you live in.

Usually, who pays for what and when can be negotiated. Buying the two policies from the same company can be cheaper than buying the policies from separate companies.

4. Specific Owner's Title Insurance Companies

The lender may be paying for the entire title insurance. If the lender is paying, but you want to choose the company, you may have to split the costs. If you are the one paying for the insurance, you can choose which company you want to use.

The seller may push their own title company. If this is the case, it is best to research that company before jumping into anything. Look for actual records of title insurance.

5. Trust Your Lender

If you are getting opposite advice from everyone, it is best to trust the advice from your lender. The lender has the same intentions as you.

The seller of an Owner's Title Insurance and the real estate agent may give you bad advice just because it benefits them. Your lender is putting money into the situation, so your loss or gain is also theirs.

Taking Title Insurance

Taking an Owner's Title Insurance can be stressful, but it doesn't have to be. As long as you consider these 5 things, the transition of title ownership will run smoothly.

For more information and tips on taking an Owner's Title Insurance, contact Heartland Abstract today!

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