Title Insurance is a onetime purchase when purchasing a home or refinancing a mortgage of a property. The title insurance covers losses that may result from defects in the title. These policies insure that a property is free and clear of liens, mortgages or other claims against the property.
A “title search” is a search usually done by an attorney or a title searcher who will review the records of the property at the town clerk’s office and should reveal any liens, judgments, restrictions, easements or anything else attached to the property.
Title insurance is offered to mortgage lenders and property owners to protect against losses if there are defects in the title and is required by your mortgage lender.
Facts for Connecticut Title Insurance:-
- The premium for Lender’s is based on the amount of the loan.
- The premium for Owners is based on the purchase price.
- When purchasing the Owner’s policy the lender’s policy is included.
- Title Insurers have to file with the state commissioner their premium rates and also make it available to the public.
- In Connecticut title insurance agents are allowed to receive up to a 60% commission on the title insurance fee, usually your attorney is the title insurance agent.
- When refinancing a mortgage you only need to get a new title insurance policy for the new mortgage, your original Owner’s policy bought at the original closing remains in effect as long as the person or heir has an interest in the property. On a refinance the insurance company here in Connecticut usually offers a discounted rate on the new lender’s policy.
I did a little research with the following companies who have title insurance calculators on line and here are the rates I got if you were buying a $1,000,000 home with a $500,000 mortgage all basic policies. Continue reading