When you are buying a home and spending thousands upon thousands of dollars in closing costs, the last thing you want to think about is shelling out even more money for something as seemingly unimportant as owner’s title insurance. But before you write off owner’s title insurance as unnecessary expense, give this blog a read.
Not only is owner’s title insurance a great investment, it is also incredibly affordable.
What is Owner’s Title Insurance?
Owners title insurance protects the purchaser from any title claims arising from the previous ownership. The owner is protected from such problems as fraud, forgery and filing errors.
Why Do I Need Owner’s Title Insurance?
A title search is performed on each transaction. The title records are only as good as the documents recorded. If a previous owner perpetrated a fraud, committed a forgery or the clerk of the land records failed to record or recorded incorrectly, the purchaser is unprotected without owners title insurance.
With the coverage, the title insurance company incurs the expense of determining the validity of a claim and defending against the claim. If there is a title defect, the title insurance company pays the claim so that the purchaser retains ownership without loss, or compensates the owner for any and all losses incurred as a result.
How Much Does Owner’s Title Insurance Cost?
Owner’s title insurance is a one-time premium set by the State of Maryland Insurance Commission. Rates are calculated on the basis of the purchase price of the home. The higher the purchase price, the more title insurance will cost.
The cost of the owner’s title insurance premium is modest in comparison with the potential loss from a claim. Whereas a legal defense of property title may start at $5,000, you can get Title Insurance with Endorsements for a handful of hundreds.
Title Insurance is a one-time fee, there’s no deductible, and it covers you for the lifetime you hold financial interest in the property.
To learn more about Owner’s Title Insurance, please contact the Maryland real estate insurance experts at Colony Title Associates by calling 410 884-1160 or visit ColonyTitle.com today!
About Colony Title Associates:
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.
Colony Title specializes in real estate title insurance, real estate settlement services, and real estate closings in Baltimore, Columbia, Maryland, Washington DC, and Virginia. Our staff consists of licensed Title Insurance Agents, Real Estate Agents, Settlement Processors, & Attorneys to handle all of your real estate needs.