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How important is buyers title insurance?


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Wiki User
2015-07-16 18:07:05
2015-07-16 18:07:05
Buyer's Title InsuranceBuyer's Title Insurance, also known as an Owner's Policy or Fee Policy, protects the new owner of the property from the "history" of the property during the duration of their ownership, whether it be 1 year or 100 years.

Since title insurance is underwritten "at the table" by the agency, it is the least likely type of insurance to receive a claim.

The new owner is protected against previous mortgages, owners, judgments, etc. that are of public record prior to the purchase of the property.

The low one-time fee over the lifetime of ownership is well worth the investment for peace of mind, since real estate is usually the largest single investment a person makes in their lifetime. Plus, in most states, there is a reduced rate at the time of purchase for simultaneously issuing both the Owner's Policy and the Mortgage Policy.

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  • After owning my $273K house for less than 2 years, I received a sheriff sale for $417K because of the previous owners business that went bust. The judgment was filed 8 monthes before my closing, and they missed it. Even with the insurance, I could have lost my house had the bank pursued the full amount (our house is worth more than $273K).

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"Advantage" title insurance sounds like a product of a particular Underwriting company. It is not a TYPE of title insurance. Many Underwriters have a "premium" Policy available to consumers that has additional benefits over the standard insurance. Ask your title agent for a side-by-side comparison of the two policies.

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Generally speaking, a title insurance producer is the same as a title insurance agent.

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Title examiners are typically employed by title insurance companies

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The term title insurance means insurance that covers the loss of an interest in a property due to legal defects and that is required if the property is under mortgage. Most title insurance is lender's title insurance.


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