Why should I buy Owner’s Title Insurance?

You may be looking at the estimate of the different costs to purchase a home provided to you by a lender and are asking, “Why should I buy Title Insurance?”.  Of course you have to buy the “Lender’s Coverage” but why should I get the additional “Owner’s Policy”?

Owner’s policy is the buyer’s assurance that their interest in the property is protected.  Lender’s title insurance covers the lender, but not the buyer.  It protects them from anything that may occur during the gap period (the period between the dates the County is actually up to in their recording process and the date the deed is recorded, putting the buyer into title.  This can be anywhere from a few weeks to a couple of months.)

It would also protect them against any human error in the research and preparation of their title commitment.  We generally tell people it is the same reason you have car insurance and home owner’s insurance.   Most likely you will not get in a car accident or a fire will not destroy your home. But if it should occur, you are very happy you have insurance!

The beauty is you only pay for it once and that’s at the purchase closing. The policy will cover you for as long as you own the home! When broken down over the monthly cost, an average owner’s policy of title insurance will cost about $4.16 per month. This is calculated using a $200,000 home with ownership length of seven years.

If you want to have a more in-depth conversation or ask any specific questions, Contact Us! and we’ll be happy to take your call. If we don’t have the immediate answer, we have a team of professionals ready to step up and help out with no cost or obligation to you!

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