When you get ready to close on your new home, you will notice on the Closing Disclosure two Title Insurance policies (if you are financing). One is the “Owners” policy, the other is the “Lender’s” policy. If you are financing, the lender will require the second one. The “Owners” policy is optional but recommended by attorneys and real estate agents. You purchase both at closing and pay only once for coverage throughout your ownership of your home.
Title insurance is designed to protect the “ownership” of the property. After closing, and as long as the current buyer owns the property, there is coverage. If there was a dispute in the “chain of title” such as fraud, defective deeds, undisclosed heirs or unpaid liens, the insurer will pay the homeowner, or hire a legal team to “clear the title”. The closing attorneys usually sell this insurance and add it automatically to the closing statements. You as a buyer are free to shop around or opt out of the “Owners” policy.
The pricing is similar across insurers, but it may pay to contact a couple of companies for pricing. Because there is overlapping coverage you will receive a discount on your “Lender’s” policy when buying the “Owners” policy. For more information call me at 770-843-2175 or go to my website email@example.com
Dan Griffin, Broker/Realtor
Keller Williams First Atlanta
200 Glenridge Point Parkway Suite 100, Atlanta, GA 30342