Do I need title insurance?
First of all, what is title insurance?
Title insurance is what a title company gives you that insures that you actually legally own the property that you purchase.
So why do you need that?
Well maybe you bought a home where the former owner passed away. You move in and a month later the former owners great nephew twice removed comes along and says that he in fact owns the home. Well title insurance protects you from such claims, meaning the insurer will pay for the lawyers to make sure you get to keep your home.
Title companies will obviously make sure that there are no other weird claims to ownership before giving you title, but crazy things can happen.
So how much does title insurance cost? Well there are actually two types and if you’re a buyer getting a loan, you get to buy both. That’s insurance for your lender and for just you. Your lender will make sure of that. The cost is based on the purchase price and the loan amount and for say $1,000,000 home with an $800,000 loan, you’d pay about $3500 for everything.