Hi y’all…
I’m in the process of buying my first home and have been learning about all the different costs involved. One thing that caught my attention is title insurance. The cost seems pretty high, and I’m wondering if it’s really necessary or just a way for companies to make extra money.
For those of you who have purchased a home before, did you get title insurance? If so, did you ever have to use it? Was it worth the expense? Alternatively, has anyone decided to skip it and had any issues later on?
I’d really appreciate any advice or personal experiences you can share to help me make an informed decision. TIA
1 Like
Hi Nick, The value of owner’s title insurance depends on your perspective and risk tolerance. Here’s why it might be worth considering:
Benefits:
- Safeguards against unforeseen title issues, covering legal fees and potential property loss.
- Provides peace of mind by protecting against unexpected claims.
Drawbacks:
- Initial cost is typically 0.5% to 1% of the property’s purchase price.
- Historically, the likelihood of making a claim is low.
1 Like
Although I acknowledge that assertions are uncommon in the present day, nevertheless, you never know when a long-lost heir, former spouse, or contractor will show up claiming a debt, right, or claim on the property. For good reason, all lenders demand it. I won’t even begin to discuss the reasons why a refinance needs a new title insurance policy.
1 Like
Hey, although title insurance offers an important protection against potentially large financial losses, title insurance is basically not seen as a scam. As a type of risk management, it has a significant impact even while the likelihood of a title issue is modest. The details of your real estate acquisition and your level of risk tolerance will determine if it is worthwhile.