Why do I need title insurance?

Why do I need title insurance? What is title insurance? How much is this going to cost me? These are common questions that buyers ask as they learn about the closing process when buying a home. I was at a meeting yesterday at North American Title Company and truly learned the importance of title insurance and why every buyer should get title insurance.

What is title?

Title is the legal right that a person has to the ownership and possession of land. Since it is possible that someone other than the seller has a prior legal right to the property you’re buying, the premium coverage offered by the Homeowner’s Policy provides you with added peace of mind.

What is title insurance?
Title insurance offers protection against claims resulting from various defects (as set out in the policy) that may exist in the title to a specific parcel of real property, effective on the issue date of the policy.

What is a “defect?”
A defect can include a prior claim of ownership from someone other than the person selling you the property, for instance an ex-wife, a former partner or a co-inheritor. It could also include a claim for an easement, giving someone a right of access across your land.

Edith Martinez, an education trainer at the Learning Center for Old Republic Title, said, “A Search is as good as what is in public records.” She went on to explain that there are three common types of defects:

  1. The seller doesn’t own the property
  2. Unreleased lien
  3. Missing or mis-recorded property information

Sue Martin, a business consultant at North American Title Company, Joanne Roach, an agency account manager for Old Republic Title, and Ms. Martinez all were seasoned professionals in this business for many years and had a plethora of stories about defects in titles that most people would not even think of! Keep in mind, even when you purchase a new home, the soil that it is on is old and has a history!

NAT.com has much more information on title insurance. Click HERE to go to their site.

North American Title company also lists 50 potential Title Defects that are typically covered by a title insurance policy. Click below to find out more.

More Than 50 Ways Owner’s Title Insurance Protects Your Homeownership Rights

To search for properties and find your next home, click HERE.

How much does title insurance cost?

The single premium is directly related to the value of your home.

About Promulgated Rates

Sale Price Rate Sale Price Rate Sale Price Rate
20,000 115.00 230,000 1,225.00 610,000 3,125.00
25,000 143.75 235,000 1,250.00 620,000 3,175.00
30,000 172.50 240,000 1,275.00 630,000 3,225.00
35,000 201.25 245,000 1,300.00 640,000 3,275.00
40,000 230.00 250,000 1,325.00 650,000 3,325.00
45,000 258.75 255,000 1,350.00 660,000 3,375.00
50,000 287.50 260,000 1,375.00 670,000 3,425.00
55,000 316.25 265,000 1,400.00 680,000 3,475.00
60,000 345.00 270,000 1,425.00 690,000 3,525.00
65,000 373.75 280,000 1,475.00 700,000 3,575.00
70,000 402.50 290,000 1,525.00 710,000 3,625.00
75,000 431.25 300,000 1,575.00 720,000 3,675.00
80,000 460.00 310,000 1,625.00 730,000 3,725.00
85,000 488.75 320,000 1,675.00 740,000 3,775.00
90,000 517.50 330,000 1,725.00 750,000 3,825.00
95,000 546.25 340,000 1,775.00 760,000 3,875.00
100,000 575.00 350,000 1,825.00 770,000 3,925.00
105,000 600.00 360,000 1,875.00 780,000 3,975.00
110,000 625.00 370,000 1,925.00 790,000 4,025.00
115,000 650.00 380,000 1,975.00 800,000 4,075.00
120,000 675.00 390,000 2,025.00 810,000 4,125.00
125,000 700.00 400,000 2,075.00 820,000 4,175.00
130,000 725.00 410,000 2,125.00 830,000 4,225.00
135,000 750.00 420,000 2,175.00 840,000 4,275.00
140,000 775.00 430,000 2,225.00 850,000 4,325.00
145,000 800.00 440,000 2,275.00 860,000 4,375.00
150,000 825.00 450,000 2,325.00 870,000 4,425.00
155,000 850.00 460,000 2,375.00 880,000 4,475.00
160,000 875.00 470,000 2,425.00 890,000 4,525.00
165,000 900.00 480,000 2,475.00 900,000 4,575.00
170,000 925.00 490,000 2,525.00 910,000 4,625.00
175,000 950.00 500,000 2,575.00 920,000 4,675.00
180,000 975.00 510,000 2,625.00 930,000 4,725.00
185,000 1,000.00 520,000 2,675.00 940,000 4,775.00
190,000 1,025.00 530,000 2,725.00 950,000 4,825.00
195,000 1,050.00 540,000 2,775.00 960,000 4,875.00
200,000 1,075.00 550,000 2,825.00 970,000 4,925.00
205,000 1,100.00 560,000 2,875.00 980,000 4,975.00
210,000 1,125.00 570,000 2,925.00 990,000 5,025.00
215,000 1,150.00 580,000 2,975.00 1,000,000 5,075.00
220,000 1,175.00 590,000 3,025.00 1,100,000 5,325.00
225,000 1,200.00 600,000 3,075.00 1,200,000 5,575.00

Rates calculated as follows: $5.75 per thousand up to 100,000; $5.00 per thousand 100,000 to 1 million; $2.50 per thousand over 1 million.
Regulations require charging for title search, examination and closing fees. A lower rate may be charged in some types of transactions such as refinances, and certain other transactions.

Typically, in Collier County buyers pay for title insurance and in Lee County County sellers pay for title insurance. In both cases the buyer’s pay for all endorsements. Keep in mind, most people pay more for their car insurance than title insurance on a home! The title insurance is a one time fee. It will continue to provide coverage for as long as you or your heirs own the property.