One of the most common questions we are asked is “Why do I need Owners Title Insurance?”
Owner’s title insurance is one of those items often misunderstood by homebuyers at closing, yet its value is tremendous.
The good news is that owner’s title insurance protects homebuyers financially, as long as they or their heirs* own the home. For a low, one-time fee (average of 0.5% of purchase price), homebuyers can rest assured, knowing they are protected from inheriting existing debts or claims to their property.
Here are some examples of times where Owners Title Insurance protects homebuyers:
- Liens against the property that serve as security for the payment of an obligation (e.g. mortgage liens, judgment liens for unpaid court judgments, federal tax liens, state and local liens for failure to pay real estate taxes or assessments, mechanic’s liens to secure payment for property improvements, liens for recovery of child support payments or, as in New York City, for unpaid parking tickets).
- Easements that have been created by contract or arisen through use or adverse prescription (e.g. rights of way for utilities, rights acquired by neighbors because of a fence encroachment).
- Building or use restrictions contained in recorded plats, agreements or deeds.
- Claims arising out of bankruptcy.
How much does it cost?
Owner’s title insurance is a low, one-time fee based on the value of your home. For example, the typical owner’s title insurance policy costs an average of 0.5% of a home’s purchase price. With a home being one of the largest investments you’ll ever make, it’s clear why getting owner’s title insurance is such a smart way to give yourself peace of mind.
We are passionate about protecting your largest investment and would love the opportunity to work with you on your home closing. To order a new title order, click here. For more information on Title Insurance, visit our Title Insurance 101 page