How can the
consumer getting ready to purchase a home or other property save money on their
title insurance costs? For those not
aware - title insurance essentially comes in three different forms - the basic
lender’s policy, the basic owner’s policy and what is known as an extended
owner’s policy. Basically, title insurance gives you protection in the
event is a lawsuit is brought to bear against the title. Such problems
can surface as a result of any claims, encumbrances and liens held by the
individual or entity selling the property. With title insurance in hand, it
means a title search has been conducted, indicating all public records were
traced involving the chain of ownership to the property.Whether
purchasing that first-ever home, another new home as your family grows or that
first office space that will launch your career as a business owner, title
insurance plays a key role in protecting your interests and
preventing you from potentially suffering a major financial setback. Here are some tips to keep me mind when purchasing title insurance:
Get more
than one quote When you bought auto insurance, health insurance (applicable)
or renter’s/homeowner’s coverage, you got several quotes,
correct? Assuming that to be true, the same approach applies with title
insurance. Visit each prospective company’s website, view their
social media pages, get a financial history on the company, find out their
rates and obtain as much detail as you can about their customer service track
record. Along with using the Better Business Bureau (BBB) and your state
insurance department, ask friends and colleagues who they went with when
purchasing a property;
Go where the
previous owner went Consider obtaining your title
insurance from the seller’s insurer (where he or she bought their title
coverage). Given that company’s familiarity with the property to be purchased,
you could save money due to the fact the title insurer has less work to do on
preparing the title for you.
Ask the seller Delve into whether or not the seller will come up with the
funds to cover the title policy. While it may not be considered the “norm” in
many instances, a seller really looking to unload a property might be talked
into picking up the title fee too. Given the fluctuation in the real estate
industry in recent years, the seller may figure doing just that will move the
property sooner rather than later.
With your goal
being to save money, shop around, consider working with the seller on obtaining
the coverage, and protect yourself and your financial interests moving forward.
About the author:
With 23 years of experience as a writer, Dave Thomas covers a wide array of
consumer and business topics, including finding the right title
insurance.
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