Sunday, February 26, 2006

Title Insurance

My wife and I saved $220 or thirty-three percent on title insurance for the house we bought this past Friday (24 Feb). It's our third house. To qualify for the rate reduction we had to get some basic information from the seller: 1) title insurance company they used, 2) amount of coverage they paid for.

The sellers were able to tell us the correct title company name. However, they over-estimated their coverage. No problem, I called the local field office for that title company and identified myself as the buyer of the property and noted the sellers. The title insurance representative pulled up the last title insurance policy (listed under seller's name) and was able to quote me the correct amount of their policy coverage.

The person was very helpful and told me that I would qualify for a $220 reduction in premium. She also mentioned that the attorney i'm using for closing had closed on the house i'm buying in 2003. Thus, my closing attorney should have the documents on hand to show proof of prior coverage.

I promptly called our closing attorney to straighten this out. Their office handles forty closings a month. You would think that verifying past coverage and giving clients the best rate possible would be standard operating procedure (SOP). In my case, it wasn't. Recommend keeping this in mind next time you buy a house.

For further information, see this interesting Kiplingers article on title insurance.

1 comment:

Anonymous said...

The case that has been discussed here is very specific about the " title insurance" and m sure many of the reader will not understand What is Title Insurance actually?
Title insurance is an insurance policy that protects you, the home owner, against challenges to the ownership of your home or from problems related to the title to your home.The policy provides coverage against losses due to title defects, even if the defects existed before you purchased your home. Obviously the question might arise that how do you know if you actually need the title insurance or not? I have an answer for this too. If you are purchasing a home, you should discuss title insurance with your lawyer to see if a title insurance policy is right for you. Your lawyer/notary can arrange the purchase of a home owner’s policy for u very easily. The main advantage of title insurance is that it will give u a piece of mind, a comprehensive coverage against any frauds and obviously it involves one time cost. :)