Owner's Title Insurance

[Spectreron]

What did you do about Owner's Title Insurance at closing? It's expensive, over $2,000.00 and I really don't want to blow the money if it's not necessary. I know the Lender's Title Insurance is required but what could go wrong that I would need the owner's insurance? I'm sure the developers has clear title to the property they're selling, so do I need it? Thanks in advance, many of you are very wise and I know I'll get good guidance!

[Cedwards38]

I'd get it. A lawyer makes a mistake somewhere in he long history of your property, and you spend years in court and maybe lose it all. Spread that 2 grand over the life of your mortgage or the life you live on the property and it looks much cheaper. Insurance is always "blowing money" until something happens that you need it. I'd get it.

[graciegirl]

We didn't get it here...for the first time. Always did before. See other thread. Why are two revived on same subject. Is someone selling title insurance?

[DianeM]

I bought the title insurance 3 months ago just to be on the safe side.

[Fairmount]

I thought that the seller supplied the title insurance to the buyer.

[Fairmount]

I thought the seller furnished title policy to the buyer

[jimbo2012]

It is NOT $2000 it is $7-800 and $300 more for both the bank & U.

Don't think about it, get it

[ahockeynut]

Think its necessary on a new build, in a development as big as TV? If the title to a lot from a developer as big as here don't you think we have a bigger problem?

[DianeM]

It is NOT $2000 it is $7-800 and $300 more for both the bank & U.

Don't think about it, get it

That's what I thought I paid as well. Something around $725.

[TheCollierCpl]

In the past I never purchased full title insurance, just the and so I would have a basis for suithouldthe problem arise. This time, I did. The lenders insurance is ubstantially discounted if you buy owners HO title ins.
TO make a long story short, we bought title insuranc, it cost us $200 more than no insurance.
A rip, yes, but ...
Check with your mortgage guy.

[perrjojo]

In the past I never purchased full title insurance, just the and so I would have a basis for suithouldthe problem arise. This time, I did. The lenders insurance is ubstantially discounted if you buy owners HO title ins.
TO make a long story short, we bought title insuranc, it cost us $200 more than no insurance.
A rip, yes, but ...
Check with your mortgage guy.
It's like any insurance....worthless ....unless you need it. I wouldn't take the risk, but that's me.

[MikeV]

We got our first estimated closing costs and noticed the bank's cost was also paid by us which is pretty much standard. We also noted that our fee was included so I asked that it be removed. When we got the final estimated closing costs the bank's fee was much higher. I was told since we are not getting our side the bank title company charges more to the bank. When we saw how much more we had to pay if we didn't get our side we decided to get it.

[jimbo2012]

It's called simultaneous coverage, always less.

I laugh when someone balks at title insurance, you pay so many other fees without a choice.

You're protecting a big investment.

[Spectreron]

Jimbo2012 I have the closing worksheet in front of me and Owners Title Insurance is $2210 and Lenders Title Insurance is $271...I pay both. That is a far cry from $700!

[justjim]

Jimbo2012 I have the closing worksheet in front of me and Owners Title Insurance is $2210 and Lenders Title Insurance is $271...I pay both. That is a far cry from $700!

Why such a spread difference between the Lenders Title Insurance and the Owners title Insurance? I'm sure Spectreron you are correct as you are looking at the numbers----I must be missing something. I understand that the Owners policy would cover 20% more (assuming 20% down) but this seems more than usual to me. The Owners policy would also be lifetime but the lender policy 20 or 30 possible years. It still seems low risk for the insurance company. A rip off in my opinion. :boom: Insurance Co. Wins again!

[jimbo2012]

Jimbo2012 I have the closing worksheet in front of me and Owners Title Insurance is $2210 and Lenders Title Insurance is $271...I pay both. That is a far cry from $700!

That's what what I paid & several others I know.

You need to check on that, must be an error

[Rebel Pirate]

Original Post from Spectreron:
Jimbo2012 I have the closing worksheet in front of me and Owners Title Insurance is $2210 and Lenders Title Insurance is $271...I pay both. That is a far cry from $700!

That's what what I paid & several others I know.

You need to check on that, must be an error

No errors. As with all insurance, the premium is linked to the amount of the coverage. If the insurance company is "on the hook" for $750,000, the premium will be higher than if the insurance company is risking $250,000.

This is also true for hazard insurance, auto insurance, etc. One person's experience (premium paid) will be different from another person's premium based on the particular facts and circumstances that enable the insurance company to quantify their risk exposure.

[jimbo2012]

Well Spectreron didn't say the amount of the home, guess then it's upwards of a 1M for that premium.

[graciegirl]

Here is an earlier thread on same subject. 2009 just for more input.

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/title-insurance-8873/

[Advogado]

What did you do about Owner's Title Insurance at closing? It's expensive, over $2,000.00 and I really don't want to blow the money if it's not necessary. I know the Lender's Title Insurance is required but what could go wrong that I would need the owner's insurance? I'm sure the developers has clear title to the property they're selling, so do I need it? Thanks in advance, many of you are very wise and I know I'll get good guidance!

Since apparently your contract does not require the seller to provide owner's title insurance, as would normally be the case, I gather that your are buying a new house directly from the developer. Presumably, your contract requires the developer to provide you with a warranty deed, which will warrant title to you. If those assumptions are correct, I wouldn't buy title insurance.

First, you can be pretty certain that the developer would have resolved any title properties himself before developing the property. Second, if there is a problem, you can sue the developer on the basis of the warranty deed. Third, the title company will do a title search when it issues the lender's policy, so the chances of any problem are reduced still further. Are you running a risk? Yeah, but it is pretty small. Remember, even if you buy title insurance, you still risk the insolvency of the insurance company.

[Spectreron]

Jimbo, the price of the home is under $400,000.
I really just wanted to know if owners title insurance was really needed since the land is from the builder and we all know he had his ducks in a row when he purchased the land.

[gustavo]

Jimbo, the price of the home is under $400,000.
I really just wanted to know if owners title insurance was really needed since the land is from the builder and we all know he had his ducks in a row when he purchased the land.

Owners title ins is a scam. If you borrowed, usually the lender requires you to get the lender's ins. The lender's ins covers the amt of the mort. The owner's covers the rest. I have bought and sold 15 properties in my lifetime and never opted for the owner's ins.

If I recall the language in the insurance is slanted against the owner as well. Kind of like when you get a termite inspection and it says if there were termites where they didn't look, they're not responsible. What a deal.

[jimbo2012]

Jimbo, the price of the home is under $400,000.
I really just wanted to know if owners title insurance was really needed since the land is from the builder and we all know he had his ducks in a row when he purchased the land.

Yes it's needed, search around online, title companies have problem claims all the time.

The issue I think you have is you're quoted more $$ than it should cost.

U know you can call any title company up for another quote and use their policy I would think.

Someone I believe miss quoted your policy.

Putting that aside if U spend $400 K for your home want's a couple of bucks for the title but shop it as simultaneous policies, not separate.


You also need extended sinkhole insurance, I think Villages insurance has the one of the only companies that write.