Title insurance is an important part of real estate acquisition. It costs less than 1% of the value of the property depending on the circumstances, the value of the property and the interest rates among others. There are several types of this insurance that have been discussed in this article. First of all, title insurance cost is an insurance policy that has been designed to protect the insured person from certain financial risks like lien and ownership. If your title of the ownership of the property is being threatened, it is the function of this insurance policy to take care of any financial expenditure that will come in.
Depending on your mortgage lender, the title insurance cost may or may not be a requirement for a mortgage loan. For some borrowers, the risk to the titles of their mortgages may lead to them looking for title insurance cost. The function of the title insurance cost is to pay off legal proceedings that may be made against the property within the life of the mortgage loan. There are some dynamics that may come in to challenge the title of the property, and for this reason there is need to have title insurance cost insurance policy.
The cheapest kind of title insurance cost is refereed to as owner’s title insurance, whose value is about 0.5% of the built-up equity. The owner will have to pay premium on this amount every month for as long as the title matures. You will choose between the payments of monthly or annual premiums. Prudence demands that you pay the premiums on monthly basis rather than an annual basis. The owner’s title insurance covers the borrower only-or rather the one to whom the title of the house belongs.
The builder’s insurance has been made to cover the losses that may take place in the course of the building of the home, as long as the title belongs to the policyholder. The lenders insurance provides cover to the lender who wants to protect his home. This insurance depends on the terms and conditions of different insurance companies. Depending on the properties that the lender owns, the insurance company may come up with a comprehensive policy for all the property belonging to the individual. Title insurance costs relatively little and is meant to protect the interests of the title owner especially. This is because the title of the home is always at risk; the owner being at danger of losing it.