No matter how carefully researched the title on your home is, there’s always a chance some hidden problem will arise. That’s where title insurance comes in; it protects you should someone challenge your ownership of the house.
While not required as part of the home-buying process, many lenders will not give you a mortgage without a lender’s title insurance policy. Owner’s policies are also available.
The cost of title insurance is based on the sales price of the property negotiated when the house is purchased. Title insurance is a one-time cost, and you pay it at closing. In the State of Maryland, premiums must be on file with and approved by the Maryland Insurance Administration. In the Commonwealth of Virginia, insurers can set and negotiate their own rates.
How much is the title insurance likely to be on your property? Old Republic Title, one of the underwriters with which Foote Title works, offers a handy calculator for estimating your title insurance costs. You can often save on the cost of insurance by buying lender and owner policies at the same time.