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4 Practical Ways to Save Money on Your Title Insurance

Many people don’t think about title insurance until they realize how much they have Man signing the title contractto pay for it. Title insurance policies cost around 1% of the entire value of the property, spanning from several hundred dollars for average-sized homes to a few thousand bucks for multimillion dollar properties.
Even though title insurance sounds like it’s only a routine document, it is crucial once you run into issues such as forged signatures on the title, liens for unpaid taxes, or missing heirs. Without proper coverage for the title, you can lose the property and all claims to it.
In spite of the benefits of having title insurance, many people still neglect to get it because of its relatively high cost. However, there are many things you can do to drive the cost down and pay only a fraction of the original price.

Shop around

Often, lenders will encourage you to purchase insurance from someone they recommend. However, that’s not going to get you the best rates. Do your research and look for a title insurance company in New Jersey, for instance, that will offer the lowest rates. You’ll be surprised how many companies will sell title insurance at a much lower cost than what the lender recommends.

Ask for a reissue rate

If a policy was issued for the title sometime during the past 10 years, you could qualify for a reissue rate, which is often 40% of the original premium price. A reissue rate allows you to pay for lower insurance costs, as the previous policy already provides coverage for any claims that may arise from events prior to your home ownership.

Negotiate the add-on fees

Title insurance may come with extra fees. You’ll also have to pay for title searches, copy fees, and courier charges, but anything is negotiable these days. Call your insurance provider and see if they can waive the fees for these expenses. Otherwise, you can always look for another title company who is willing to do that for you.

Ask for a simultaneous issue rate

You will need a title insurance to protect yourself, but your lender will also require coverage for them. If you buy owner’s insurance and lender’s insurance at the same time, it is possible to get a discount for having both insurance policies issued simultaneously

While you may not like paying additional fees for title insurance, coverage can go a long way in protecting you from problems with the title later on. As long as you shop around and do your homework, it won’t take long before you find a title company that’s willing to sell you a policy at a lower cost.
  • Posted by on March 31, 2017