TITLE INSURANCE
WHAT IS TITLE INSURANCE?
Title insurance protects the lender and/or homeowner from financial loss against claims regarding the legal ownership of a home.
While most lenders require a title search, the title insurance ensures that if anything is missed during the search, those insured will be protected if any legal issues arise. IS A TITLE SEARCH SUFFICIENT? There are two types of title insurance: one for lenders and another for homeowners. Lender's title insurance is required by lenders but it does not cover you. A separate homeowners policy is needed to protect yourself from a claim on your home, and from being held financially responsible for possible unpaid property taxes from previous owners. HOW DOES TITLE INSURANCE COVERAGE WORK? Title insurance is a one-time fee that is paid at closing, which costs between $500-$3,500 depending on the state, insurance provider and the purchase price of the home. Some companies will offer a discount if you bundle the lender's and owner's policies, but typically the buyer purchases the lender's policy and the seller pays for the owner's policy. HOW MUCH DOES TITLE INSURANCE COST?
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