Shopping for insurance isn’t something that comes easily for most of us. There are all types of jargon and lingo we don’t understand, different tiers that we don’t quite comprehend, and add that to the time pressure many of us are under when selecting title insurance due to it usually being purchased in the same time as you’re closing on a house - it’s a lot.

That being said, here are four questions you should be asking when shopping for title insurance to make the choice a bit easier for you to make:

1. What does the title insurance policy cover? 

It's crucial to understand the extent of coverage provided by the title insurance policy. Inquire about the specific risks and potential issues that the policy protects against. Typical coverage includes protection against fraud, undisclosed liens, errors in public records, and other title defects.

2. What are the policy exclusions and limitations? 

Title insurance policies often have exclusions and limitations that outline certain situations or risks not covered by the policy. Ask for a clear explanation of these exclusions to understand any potential gaps in coverage. Common exclusions may include environmental hazards, boundary disputes, and certain types of title defects.

3. How much does the title insurance policy cost? 

Title insurance premiums can vary, so it's essential to obtain a detailed breakdown of the costs involved. Ask for a quote that includes the premium, any applicable endorsements or additional coverage, and any associated fees or charges. Additionally, inquire about any potential discounts available - you may be surprised to learn what you’re eligible for!

4. How long will the title insurance coverage last?

Title insurance policies typically provide coverage for as long as you or your heirs own the property. This is known as "continuous coverage" or "perpetual coverage." However, it's essential to confirm the duration of coverage and any circumstances that might terminate the policy. For example, some policies may cease coverage if you transfer the property or obtain a new mortgage.

Remember, it's always a good idea to consult with a qualified title agent during the title insurance shopping process to ensure you understand the terms, conditions, and implications of the policy you're considering.

If you’re ready to get started with your title insurance shopping process, get in touch with us! We’d be happy to help.