The Necessity of a Good Title Policy: What Is Owner’s Title Insurance?
What is owner’s title insurance, and why do we need it? This is a question that many homeowners ask about when they are presented with the necessity of buying title insurance for themselves and for the lender, and paying for both of them from their own bank accounts. It doesn’t seem fair, does it? Moreover, when we think about the fact that owner’s title insurance is optional, we might even believe that it shouldn’t be necessary at all. Unfortunately, the matter is not that simple.
Understanding Owner’s Title Insurance
So, the main question is, what is owner’s title insurance all about, and why do we need it? Owner’s title insurance is a type of insurance that only requires a flat fee to protect homeowners against title disputes. Anything that goes wrong with the title will be dealt with, and you – as the owner – won’t have to move a muscle to get it done. While this seems like the case when we read the sales pitch for most title companies, this fact isn’t always reflected by reality. There is a huge difference between cheap title insurance and a reasonably priced policy offered by an experienced and reliable insurance company. As we will see below, even though the first will cost less, it will never be able to offer you the kind of support and help that a dedicated title or closing company can provide.
Why Do You Really Need an Owner’s Title Policy?
What is owner’s title insurance, and what does it include to attract so many buyers? The answer to this question will never be a straightforward one, no matter who you ask. Most title companies will, however, offer a great deal more than others, as part of their Standard owner’s insurance policies. The main reason why title insurance is to cheap – compared to other types of insurance policies – is that it primarily offers information. Sellers are better able to know about title problems before selling their homes, and the title companies can sometimes help them save thousands of dollars in the process. At the same time, buyers can avoid any issues with sellers or prior owners who had liens, or who shared the home with another contender, such as a divorced spouse. It’s not unlikely that that person would return to make a claim.
The Importance of Researching Title and Closing Companies
What is owner’s title insurance all about from the perspective of the title company that issues it? Not all title companies are the same. While some charge a lot of money for their policies, they don’t go to great lengths when it comes to correcting title mistakes or even drawing any attention towards them. As a result, it is essential to research title and closing companies before purchasing their policies, and find out whether their past clients have anything good to say about them.
Saving on Title Insurance Costs: Simultaneous Issue Rates
Since lender’s title insurance is mandatory, homeowners can save a great deal of money by opting to buy owner’s title insurance from the same company. After researching it and making sure they can provide the protection you need, ask for their simultaneous issue rates to find out how much it would cost. In most cases, the answer to the question, “what is owner’s title insurance like, and how much does it cost” will be a far more pleasing one, after you take the initiative on this matter.