Before we dive into answering ‘how much is title insurance?’, let us establish what it exactly is and why it is such a wise and recommended investment to make when buying your home.
How Much Does Title Insurance Cost?
First and foremost, a title is the right to own or use your property. With a one-time fee, a title insurance policy ensures that your rights to own or use the property are completely protected. The title company will conduct a thorough search of public records to find any potential issues on a house/property right before any transfers go through.
This is important because while everything on the outside may look great with the property, the previous owners may have an outstanding unpaid roofing bill which could end up being your problem to compensate the business for out of your own pocket. Or the previous owners had an unaccounted-for lien which could make you liable for that mortgage lien post home-buying. That is why title insurance is vital in instances like these!
The Cost of Title Insurance
Now that we have established what title insurance is and why it is important, it is time to find out how much this coverage will cost you.
The great thing about insuring the title of your home is, even if you pay the fee when you buy the home, that policy sticks with you for as long as you own that property. That goes for even if you refinance, your title policy that you paid for when you originally bought the property is still in effect!
For a low, one-time fee, a title insurance policy costs you (the homebuyer) an average of 0.5% of the home’s purchase cost. In our expert opinion, it is 100% worth its weight in gold to pay this one-time cost because you will be completely covered for the entirety of property ownership.
To Sum It Up
Home-owning is a wonderful experience. And as we’re sure you know it does come at a price. Buying and owning a home is one of the largest investments you will ever make so it’s important to keep that property protected. For the one-time fee of purchasing title insurance, you and your home will be protected for as long as you own the home! Totally worth the ease of mind.