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5 Tips for Choosing the Right Pennsylvania Title Insurance

Monday, January 25, 2021

Buying a new house? No matter if you're an experienced homeowner or just entering the housing market for the first time, you need title insurance. 

Many people have never heard of title insurance. However, if you don't buy title insurance you are usually putting yourself at risk. Furthermore, it's often a requirement- so as a homeowner you need to educate yourself.

When it comes to choosing local title insurance, you want the best for your money. Find out how to choose the right Pennsylvania title insurance.

What Is Title Insurance?

Title insurance originated in 1868 after a Pennsylvania case called Watson v. Muirhead. A customer had unknowingly bought a property that had liens against it and was then stuck with owing the money. 

Title insurance protects the homeowner against unknown legal risks and financial obligations that may be attached to their property.

For example, let's say someone buys a house. After the purchase, a relative of the seller shows up and claims they actually inherited half, so the new owner owes them a lot of money. Title insurance is a type of indemnity insurance that will protect the buyer and pay for any legal fees that arise.

In the long run, it's better to have title insurance for peace of mind- and in states like Pennsylvania, it's mandatory.

How to Find Title Insurance

When you buy title insurance, your realtor is often the best person to ask for recommendations. They should be able to refer you to a good title company in your area. Generally, you will pay a one-time premium of anywhere from .50% to 1%, but this will vary depending on where you live in the U.S.

However, it may also be less expensive to go with an independent title insurance company, so do your research. You should start early in the process to ensure you aren't rushed into something that winds up costing you much more in fees.

Buying Pennsylvania Title Insurance

In Pennsylvania, title insurance is mandatory. Rates tend to run from a low of $1,138 to a high of $3,680, according to a recent article in the Pittsburgh Post-Gazette.

Title insurance rates include a title search. They are based on a tiered system that is approved by the Pennsylvania Insurance Department. What you pay will depend on how much your property costs or the refinance amount if you are refinancing.

It's important to do your due diligence and interview several title insurance companies before making your final decision. This way you will have a good overview of current trends in title insurance fees, and what is a reasonable amount to pay.

How We Can Help You With Title Insurance

As an independent title company, we focus on providing Pennsylvania title insurance as transparently as possible. We don't charge extra fees and don't exist to help real estate agencies make extra money.

You are welcome to use our free checklist to calculate what title insurance will cost you. We are also available to provide a free quote based on your individual title concerns, so contact us today! 

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