Save on title insurance

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.