Definition of "How to get title insurance"

You’ve read all about how to stop a lien on your property, which convinced yourself that title insurance is a must. But now you’re wondering how to get title insurance. Where do you buy one? Is it something you must ask your real estate agent?

Well, you can, but he will probably answer what we’re about to answer, as real estate agents do not sell title insurance: whenever you enter the closing process and sign the purchase agreement, your escrow agent will launch the process of getting it (if you want to). The escrow agent or your attorney will choose which of the five major US title insurance companies will underwrite your policy.

How much will it cost to get title insurance? Differently from other types of insurance, with title insurance you typically pay a one-time fee of about $1,000 – but this amount can change from state-to-state. FYI, this fee is typically included in the closing costs, so that’s why the escrow agent is the one who asks you if it should be included. Another thing that will be asked to you is if you want both kinds of title insurance: the owner’s policy and the lender’s policy.

The Lender’s policy is typically required by most lenders in order to secure your mortgage. It’s a type of insurance for them to continue getting their loan amortization should a problem with your title arrive. And the owner’s policy is what most people are referring to when they talk about title insurance: in the event of a title problem, they cover the home buyer’s costs with the problem.

Fun fact: the normal would be, of course, that the home buyer pays for both kinds of title insurances, right? However, there are some states where it’s either negotiable who gets to pay, or the home seller is the one who pays for these insurance fees. The thinking behind it is that the home seller should be the one giving away a clean title, so he’s the one who should be responsible for covering everyone should a problem arise.

So, as you can see, it’s pretty simple to learn how to get title insurance. What’s very important is that you do get one. Just like that old phrase says: better be late than sorry!

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Questions

Popular Insurance Glossary Terms

Publication that lists premiums charged for products sold by an insurance company. A manual also has underwriting guidelines for agents. A life insurance rate manual includes minimum ...

Coverage for crops in the event of loss or damage by insured perils including hail, fire, and lightning. Prior to the passage of the Federal Crop Insurance Act in 1938 it was virtually ...

Maximum amount of insurance coverage that an underwriter will write on a particular class of property or risk exposure. ...

Additional amount of surplus from an additional amount of capital necessary to act as a supplement to the cash flow in the event unforeseen contingencies occur that disrupt or impair the ...

Pension funding agreement under which funds paid into a retirement plan are not currently allocated to purchase retirement benefits. The funds of one plan can not be commingled with funds ...

Layman description of the key features and benefits of a pension plan that must be filed with the Department of Labor. Periodic updates of this summary must also be provided to the ...

Damaged insured property in receipt by the insurance company resulting from abandonment and salvage, subrogation, and reinsurance. ...

Replacement for the earlier Family Automobile Policy (FAP) with these nine basic coverages: Coverage A Liability, The company pays damages for which an insured becomes legally obligated ...

Tax-exempt entity as qualified under Section 501 (c)(9) of the Internal Revenue Code. The VEBA usually provides its members and their dependents and beneficiaries with paid life insurance, ...