What is Title Insurance?
Is title insurance like homeowners insurance?
What's the all - inclusive rate?
I'm refinancing, why do I need title insurance?
Do I still need title insurance for a new home?
Wrong. Most people are familiar with one kind of
insurance - casualty insurance - and assume that all insurance works the
same way. It doesn't, and this misunderstanding causes confusion. Land title insurance protects you
from events which may have happened in the
past, not events that are likely to occur in
the future, as does casualty coverage like
In Pennsylvania we have an all - inclusive rate for title insurance.
It bundles together the insurance premium, the cost of executing the
title search, and the settlement fee.
When you refinance you are obtaining a new loan, even if you stay
with your original lender. Your lender will require lender's title
insurance to protect their investment in the property. You will not need
to purchase a new owner's title policy; the one you bought at closing
is good for as long as you and your heirs have an interest in the
Construction of a new home raises special title problems for the
lender and owner. You may think you are the first owner when
constructing a home on a purchased lot. However, there were most likely
many prior owners of the unimproved land. A title search will uncover
any existing liens and a survey will determine the boundaries of the
property being purchased. In addition, builders routinely fail to pay
subcontractors and suppliers. This could result in the subcontractor or
supplier placing a lien on your property. Again, lenders want to be sure
the property has clear title, and they are insuring the correct
property. Title insurance will protect you against these potential
problems and pay for any legal fees involved in defending a claim.
You want to be sure your title insurance company offers financial
strength, experience and expert service. You receive these benefits when
you work with PLTA-member, licensed agents of any one of
the underwriter member companies of the Pennsylvania Land Title