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

Home Mortgages and Home Buying Title Insurance.. Standard vs. Enhanced. is extra 10% cost worth it?

  • Avatar leeandrewck 
    Participant
    Status: Physician
    Posts: 1
    Joined: 04/26/2018

    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,

    #220824 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3437
    Joined: 01/14/2017

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

    #220835 Reply
    Liked by Craigy
    Avatar DCdoc 
    Participant
    Status: Physician
    Posts: 535
    Joined: 06/14/2016

    No

    #220846 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6061
    Joined: 01/12/2016

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

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

    #220885 Reply
    Liked by ENT Doc
    Avatar Insurancepro 
    Participant
    Status: Financial Advisor, Insurance Agent
    Posts: 47
    Joined: 03/26/2019

    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.

    #220909 Reply
    Liked by ENT Doc, Zaphod
    Avatar Steven Podnos MD CFP 
    Participant
    Status: Physician, Financial Advisor
    Posts: 163
    Joined: 09/21/2017

    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.

    #220947 Reply
    Avatar Physician Finance Basics 
    Participant
    Status: Physician
    Posts: 37
    Joined: 06/02/2019
    Earnest refinancing bonus

    (1) should be plenty. (2) is overkill

    Blogging and videocasting about the basics of personal finance at http://physicianfinancebasics.com

    #220964 Reply

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