Title Insurance May Seem Like Another Troublesome Fee,
But Here's Why It's Necessary:
1 Protects against threats to ownership
When a property is transferred from one owner to another, unresolved issues such as tax liens, forged signatures, recording errors and others may be found, threatening your ownership to the property
2 One time fee for lifetime coverage
Unlike most other insurances, title is only a one time fee (typically 0.5% of the purchase price) and it covers your ownership of the property until it is sold or transferred.
3 Lower loss rates
Compared to other forms of insurance, title has lower loss rates which is important for the buyer since it decreases the risk of loosing homeownership. Title insurance, however, must be renewed when refinancing a mortgage in order to protect the rights of the lender.