Title Insurance Cost

KLeer Title

Title Insurance Fees

Title insurance policies are regulated by the Department of Insurance. Most of the time, the seller pays the policy for the buyer at closing.

Length of Coverage

Also, unlike other types of insurance, the purchase of an owner’s title insurance policy is a one-time event; paid by the seller at closing.

There are no future premiums to pay if you or your heirs hold an interest in the property, which means this fee is generally paid for you when you purchase a real estate property and will protect you and your family indefinitely for so long as you hold an interest in the property.

That said, if you refinance your home, your lender will likely require you to purchase a new loan policy, as this type of insurance protects the lending institution only for the life of the loan.

Your owner’s policy, however, will remain effective.

Keep in mind, when you provide your title insurance company a copy of your owner’s title policy you will get a discount for a refinance loan policy. This is like having a coupon to save you money on the new loan policy.

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Minimizing Risk

To properly eliminate risk, the process of issuing a title insurance policy includes a thorough search of public records and court documents to assess and remove finds or issues on the property’s title.

Claims

Because of the statistically small percentage of title insurance claims filed each year, it may be difficult for homebuyers to gauge the value of their purchase. However, the low number of claims illustrates the effectiveness of title insurance providers in locating and minimizing risks. In fact, a large piece of the premium paid for a policy goes to fund the legwork required to thoroughly research the property’s title. According to the American Land Title Association, the typical expense ratio for a title insurance company is 90 percent, compared with 30 percent for a property and casualty insurance company.

Choice

As a seller or a listing agent, you can choose the title company you wish to close with. Being informed is the best way to decide which company suites you best. KLeer Title, LLC. specializes in communication and stress-free closings, as we have over 28 years of experience.