Title Insurance

How important is buyers title insurance?

Top Answer
User Avatar
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.

More input from Wiki s contributors:

  • 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).

Related Questions

User Avatar

"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.

User Avatar

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

User Avatar

First American Title Insurance Company Fidelity National Financial Stewart Title Insurance Guaranty Old Republic Title Insurance Company North American Title Insurance Company Chicago Title Insurance Company

User Avatar

Title examiners are typically employed by title insurance companies

User Avatar

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.

Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.