Thursday, January 15, 2009

Home property title insurance

Home property title insurance usually is required by the lender to protect the lender against loss resulting from claims by others. In some states, attorneys offer homeowner property title insurance as part of their services in examining and providing a title opinion. The attorney's fee may include the premium. In other states, a company or agent directly provides the title insurance. New house owners should be aware that the seller may not require the buyer, as a condition of the sale, to purchase this policy from any particular company. Usually, the lender will require a policy from a company that is acceptable to it. In most cases the new house owner can shop for and choose a policy that meets the lender's standards and their own personal satisfaction and price.

To save money on these types of policies, compare rates among various companies. The buyer should ask what services and limitations on coverage are provided under each homeowner property title insurance policy so that a knowledgeable decision can be made about coverage purchased at a higher rate that may be better for their needs. However, in many states, premium rates are established by the state and may not be negotiable.

If the buyer is purchasing a house that has changed hands within the last several years, they should be sure to ask the insuring company about a "reissue rate," which would be cheaper. Reissue rates are for a transfer of property with a short time of a purchase of a property.
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