Hello, in this video, we’re diving into the realm of title insurance costs and what’s encompassed in a title insurance policy. I’m Dave from TitleSearch.com, and we’ll unravel the distinctions between title search and title insurance while exploring the associated expenses.

Understanding Title Insurance

Title insurance is a safeguard for real estate ownership, ensuring its legitimacy and protecting against any existing liens on the property. It’s a comprehensive product that includes a title search as just one element of the policy.

Title Insurance Premiums: State-by-State Examples

Title insurance premiums vary by state and are typically standardized or very similar across major insurers. Here are some examples to give you an idea:

  • In Pennsylvania, title insurance for a $100,000 property might cost $1,125.
  • Florida sees an $850 premium for a $150,000 property.
  • California, for a $400,000 property, may have a premium of around $1,200 to $1,280.
  • Illinois showcases a $1,000 premium for a $200,000 property.
  • Georgia reveals a $515 premium for a $125,000 property.

Duration and Coverage

Unlike car insurance, title insurance is a one-time premium paid when the property is acquired. It covers the owner for as long as they possess the property. The coverage extends beyond the title search, involving additional steps to ensure a secure ownership transfer.

Components of Title Insurance

Apart from the title search, the title insurance process may include:

  1. Survey: Identifying property boundaries to prevent encroachments or title issues from neighboring properties.
  2. Credit Report: Assessing the financial stability of the seller, which is vital to both buyers and sellers. Seller debts or judgments could become liens on the property.

Underwriting Process and Timeline

Plan for approximately three weeks in advance when obtaining title insurance. The underwriting process can take up to a month, involving a thorough review of title search records, surveys, credit reports, and underwriting on legal descriptions.

Exclusions and Policy Types

The first page of a standard title insurance policy details exclusions from coverage, such as current year’s taxes, specific liens, or boundary issues. It’s crucial to decide whether you need a lender’s policy or an owner’s policy. While a lender’s policy covers the mortgage company’s interest, an owner’s policy protects the property owner’s interests.

Cautionary Notes on Ownership Changes

Be cautious when transferring ownership through a quitclaim deed or changing the title name, as it might void the title insurance policy.

Additional Costs and Considerations

Beyond premiums, there might be additional costs, such as settlement fees or fees for endorsements related to homeowners or condo associations. The escrow or closing agency, or an attorney, will typically handle these aspects.

Connect with TitleSearch.com

If you have questions or need information about title insurance or title search, reach out to us at TitleSearch.com. We’re here to provide the guidance and insights you need to navigate the intricacies of title insurance costs.