Question:

How to pay less for title insurance policies?

Answer:

There are several basic title insurance policies and levels of coverage - lenders and owners title insurance policies and standard or extended coverage. Extended coverage title insurance policies are usually available through ALTA endorsements. Actually, ALTA policies are extended owners title insurance policies.

Lenders title insurance policies are required on any real estate transaction - purchase or refinance and the coverage is up to the loan amount. Owners title insurance policies have to cover the whole purchase price of the property.

How do you pay less for title insurance coverage?

If you use a single title insurer for both lenders and owners title insurance policies, the title company will have to perform a single search and title service costs will be incurred only once. Also, sometimes it is possible to have a combined lender-owner title insurance policy:

If the property costs $250,000 and you put $50,000 down the lender will need coverage for $200,000 and the borrower - for the $50,000 equity they have in the property. This will significantly reduce the overall cost for a title insurance policy.

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