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Title Insurance.. Standard vs. Enhanced. is extra 10% cost worth it?

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  • Title Insurance.. Standard vs. Enhanced. is extra 10% cost worth it?

    Hi,

    We are in the process of closing on our first home. The cost of the lender's title insurance is required by the lender and is regulated by the state here, based on home purchase price.  We were offered to options to:

    1. Purchase owner's title insurance

    2. Choose between standard vs. enhanced title insurance (enhanced one would provide in theory provide more comprehensive coverage, things like post-purchase lien on the property, etc).

    The target house is relatively new, built in 2007 with one prior owner, located within a HOA community.  i'm leaning towards getting the owner's title insurance. Is the enhanced version worth the cost (~$400)

    Thanks,

  • #2
    No. In speaking to my title person they saw title insurance come in handy one time in 20+ years. What a joke.

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    • #3
      No

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      • #4
        No, regular title insurance isnt worth it, what a scam.

        For as rarely as its a problem it is exceedingly overpriced.

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        • #5
          Title insurance policies rarely pay claims because the insurance company finds and eliminates title problems during the underwriting process. That's really what you're paying for.

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          • #6
            I'd agree that the real value of the title insurance is having someone with skin in the game carefully evaluating the chain of title and finding fraud, easements, government actions against the property (etc.).  But I did in fact once have title insurance also pay off on a property that had a "missed sale" before I became involved.  I think you have to have it.

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            • #7
              (1) should be plenty. (2) is overkill
              Blogger at Physician Finance Basics

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