How Much Does Title Insurance Cost in SWFL, And Why Do You Need It?

Are you planning to buy or sell a home? If so, title insurance should be part of the things you need for a successful transfer of property. Title insurance protects a current property owner together with the lender in cases where the previous property owner lacked absolute ownership over the property.

If you are wondering how much title insurance costs in SWFL for home buyers, then you should know that the average cost is $ 1000. However, the amount can vary depending on many reasons, such as the value and location of the property. The higher the value of the property, the higher the cost of title insurance. Different states have varying title insurance costs.

Let us discuss in details what title insurance is and why you need it when buying or selling a home.

What is title insurance

Title insurance protects the home buyer and his lender in case anything goes wrong with the title of the property. Title insurance covers for the cost of working on your title in case somebody disputes ownership of the property. Moreover, it will compensate you and your lender should you lose the property in the long run.

A title insurance policy protects the property owner together with the property’s financier. Lenders demand that title insurance fees be paid as part of the closing costs when taking a mortgage. Homeowner title insurance costs can be borne by a property’s seller or the buyer. It is mostly optional.

Differences between a lender’s title insurance and owner’s title insurance

Lender’s title insurance is mandatory when taking a mortgage and is supposed to compensate your lender in the event you lose the property to title ownership wrangles. An owner’s title insurance is most at times optional but is beneficial in covering the costs or damages resulting from title issues.

Why do you need title insurance policy?

Title insurance coverage starts from the day you purchase the policy and runs back into the history of ownership of the property. It protects against forgery of titles claims among many other issues that may result in you losing ownership of the property.

It protects against:

1. Forged transfers of ownership rights in the property

Title insurance will offer protection in case you find yourself dealing with fraudulent ownership transfers in your property.

2. Unintentional errors in recording or filing of title documents

Errors are common to man and it can be costly to lose property due to small mistakes that occurred during the filing of title documents. Taking a title insurance policy can protect you from such a situation.

3. Previously unreported liens and easements on the real estate

A property can be having a lien by the time you are purchasing it. Some property sellers do not like revealing such previous arrangements because it will drive away buyers. Title insurance can help you in such instances.

4. Other title defects that pre-existed

Title insurance covers all the other title defects that existed before purchasing the property. You are assured of a smooth transfer of ownership in a home-buying process when you have this policy.

Heights Title Services LLC is an attorney owned and operated title agency in Southwest Florida. We help you in acquiring title insurance for your property, whether you are a buyer or a seller. Contact us today for a quote.