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How to Save Money on Title Insurance for Beginners

Monday, October 12, 2020

If you're looking into receiving title insurance for the first time, then you might not be aware of how to save on costs. What is the standard cost of title insurance? How do you know whether you're receiving a good deal or not?

It's all about getting as much return on your investment as possible. If you pay for a title insurance policy that's too low, you might be sabotaging your closing process. Make sure the policy you pay for has everything that you need.

See below for ways on how to save money whenever you're looking for title insurance providers. Be sure to consider all of these key points below.

1. Create a Budget

As with any other type of insurance policy, you will want to make sure and find a policy that's within your financial range. Many people go into their search without creating a budget, and end up getting hustled by unreliable title insurance providers in the process.

To avoid that, you want to find a trustworthy provider that's willing to work with you on finding a policy that fits your best interests.

In fact, you can save hundreds of dollars by simply looking for a title insurance provider that waives certain fees, but more on that in a moment.

If you haven't already, start this part of the process by building a budget. See how all of your closing expenses add up, then calculate the price range that your new title insurance policy will have to stay between.

You'll want to consider other closing costs such as property taxes, appraisal fees, and homeowner's insurance that you'll also need during the process. 

You don't have to sacrifice coverage to get a budget-friendly title insurance policy for your property. By simply looking at the details of the cost of title insurance and the services you need, you'll wind up with a higher ROI.

2. Keep Your Eyes on the Fees

There are many different title insurance policies out there. Some are more extensive than others. You might need more coverage to protect from things such as unrecorded easements, post-policy encroachment, or a subdivision law violation.

However, many unreliable title insurance providers will try to take advantage of all the coverage you need. They'll attempt to disguise many of their fees, giving you a quote that doesn't include all the hidden costs after you've signed the dotted line.

Many title providers will charge you for things like a settlement fee, incoming wire fee, document preparation fees, and outgoing wire fees. Those fees alone are worth around $230 to $320 combined.

You shouldn't have to pay that kind of money for processes that are part of your provider's duties. Instead, find a trusted title insurance company that waives those fees.

You can find a reliable title insurance provider by looking for one that provides a fee checklist, giving you a thorough explanation of all the fees you'll save on. This way, you can get the same high-quality coverage without paying up to $300 more for it.

3. Discuss With the Home Seller

While it's rare, there are certain circumstances in which the seller of the home will pay for your title insurance policy. This is becoming more common in today's market, where the buyer (you) has a majority of the leverage.

If you feel as if the asking price for the home is a bit higher than it should be (but you're still meeting that price), then them paying for your title policy could even things out.

Sellers might be especially open-minded to this idea if you take the time to find a provider who waives several fees. 

4. Look Into Different Policy Options

Not everyone requires the same amount of coverage in their title insurance. For that reason, some title insurance providers are offering different levels of coverage with different policy tiers.

For example, Heartland Abstract offers a standard policy and an enhanced policy. The standard policy covers basic scenarios such as a fraudulent title, documents not being signed properly, or when you're dealing with restrictive covenants.

The enhanced policy offers all of those features, plus coverage on things like building permit violations, post-policy prescriptive easement, lifetime insurance coverage, and so on.

This offers you the chance to find a title insurance policy that A) meets your required budget and B) has all the coverage that you need.

5. Search Online Reviews

If you really want intel on the prices of a title insurance lender and whether those prices are justified, there's no better person to ask than their previous/current clientele.

During your search, be sure to take the time and look at online reviews of the title insurance provider that you're considering. Scan the comments to see if there is any input on the price, service level, and different stories with the company.

Keep in mind that you have to make some comments with a grain of salt. However, the overall theme of the online reviews will give you an indication of whether you can trust the price of the service or not. 

Save Money on Your Title Insurance by Finding the Right Provider

Now that you've seen several ways to try and save money on your title insurance, it's clear that the provider makes all of the difference. Find a company that's willing to work with your budget and your coverage needs.

Be sure to take the time and read this page to learn more about Heartland Abstract and why they're the ideal provider for your needs.

For more inquiries, please be sure to reach out via our contact us page and we will be happy to assist you further!

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