What is title insurance (owner’s policy)?
Title insurance is a form of indemnity insurance that protects homebuyers from financial loss sustained from defects in a title to a property.
Do I need both loan AND owner’s policies?
As a buyer of real estate property, you’ll want to protect your major investment as well as the ownership rights that come with it. That’s why it’s wise to purchase an owner’s policy of title insurance in conjunction with the loan policy your mortgage lender will require you to purchase.
What are some the most common claims title insurance will protect me against?
Some of the most common issues are:
- Existing Liens and their priority.
- Fraud and Forgery
- Undisclosed heirs and marital rights
- Violation of zoning or building permits
- Property’s improper legal description
- Escrow and Closing errors etc.
What does a title search process involve?
A title search is a complex process, one that very few homeowners recognize, at the time they purchase their home. When you purchase title insurance, Five-Star Abstract professionals will conduct a public records search to identify and correct, when possible, any issues that could affect your right to own your property.
What is the typical price of an average title insurance policy?
Since it is a highly regulated industry, title insurance policy costs will vary from state to state. In general, however, each policy price is based on the purchase amount of the home (for an owner’s policy) or the total amount of the loan (for a loan policy). In case of owner’s (title) insurance policy, you should be looking at approximately $2.50 per $1000 dollars of your home value.