Title Insurance – What is it and Should I Get it?

It is an insurance policy that protects a lender's or owner's interest in real property from assorted types of unexpected or fraudulent claims of ownership. It's customary for the buyer to pay for the "lender's" title insurance policy, this protects the "lender's" interest. Most if not all lending institutions require this and normally include this fee in your estimated closing costs.

What is not included in your estimated closing costs is "Owners Title Insurance", this protects the "owner"/you (the buyer). An Owners Policy protects the owner from title problems that were not disclosed by an examination of the public records and while a Lender’s policy only insures that the lender has first lien on the property. The buyer will usually be offered an “owner’s” title insurance policy at closing for an additional fee:

This is calculated by the purchase price of the home:

For example: With a purchase price of $150,000

Initial reduced rate would be $575.00 for ND & $637.50 for MN

You will have up to 30 days after closing to decide whether to purchase at the reduced rate or not. After that it may still be available for purchase at a higher rate. It’s a good idea to ask friends, family or a real estate attorney if they think you should purchase the policy for the particular property you are purchasing. This is a personal decision just like any other optional insurance policy (i.e. life insurance).

FM Title Company will answer all of your questions about title insurance, feel free to call them anytime if you have questions or if you would like a quote for owners insurance on your purchase.

FM Title Company 701-893-1000