Title Policy Pricing
Title insurance prices may vary from state to state. While some states allow a title insurance company to establish their own rates, some are set by the state themselves; this is true in Florida, New Mexico and Texas. In many cases, the closing attorney for your property has a relationship with a title insurance company and the title insurance will be part of your closing costs. In general rates are based on the value of the property and are quoted as a flat rate per $1,000 of value.
The good news about title insurance is that it does not involve a monthly premium. In fact, title insurance policies are paid as a lump sum premium at the time of the mortgage closing. Title insurance then goes on to provide coverage as long as the buyer owns the home. In most cases, the cost of title insurance is borne soley by the person who is taking out the mortgage for both owner's policies (if elected) and for lender's policies. Even with two separate policies, the costs should not be out of reach for most people who are buying a home. The additional monies at closing can save thousands of dollars in costs later.
While title insurance prices may not vary tremendously, the services that are included do vary and it is highly advisable that a borrower find out exactly what is covered before agreeing to purchase a policy. Understanding the various types of title insurance is only the first step, homeowners must also understand the risks associated with not having the right coverage.
Title insurance coverage can save a homeowner thousands of dollars in legal fees and hours of time proving they are the rightful owner of a home. Even those who purchase their home brand new, directly from a builder, it is still possible to encounter title problems. Homeowner's should speak with their lenders about what coverage is included in the fees that they are paying at closing and take the steps needed to purchase additional coverage if there is no buyer's policy included.