Title insurance is part of your closing costs. But what do you get when you buy title insurance? Unlike other insurance which protects your assets against future events, title insurance is concerned with what might have happened. It’s meant to defend your ownership against past activities such as liens, additional mortgages, sewer system assessments, claims to ownership and other property issues.
Your title insurance covers three services: an examination of property records, closing and settlement services, and any risk to your title ownership. In Pennsylvania, the law states that your title insurance rate must be all-inclusive, so all of these actions are part of the rate you pay. Your insurance costs are based on the sale price or mortgage amount of your sale, whichever is higher. We have an online calculator to help you estimate your rate.
You would never buy a home without homeowners insurance. What if there was a fire or a flood? You would rely on your protection. Title insurance is there to protect you against any past events that may affect your ownership. You don’t have to worry about a previous owner’s debts, easement issues, or ownership claims when you have title insurance. Don’t let the past haunt your future; make sure you get title insurance.