Q&A With Security Abstract

Q: What is title insurance and how can I find out how much it will cost? Is it mandatory even if I’m buying new construction?

A: Title insurance is protection against loss if a covered defect is found in your title. When you buy a home, you are given a title to the property, which generally means you receive full legal ownership. Sometimes, however, there may be a hidden mistake in a prior deed, will, mortgage etc. that may give someone else a valid legal claim against your property. It provides a “safety fence” around your new home.

While title insurance isn’t mandated by the government, your lender will most likely require it (even for new construction). The buyer has the choice of which title agency to use.

Prices are state regulated and rates are based upon the sale price of your home. You can check out current rates on the security abstract website by clicking on the link “Rates” at the top of the page. The “sale” rate is applicable for all real estate purchases, and it offers coverage to both the owner and lender. The “non-sale” rate is applicable when we are only issuing a Loan Policy (such as when you’re refinancing). Additional protection can also be offered with an Enhanced Homeowner’s Policy, which offers coverage on 28 additional risks

Please don’t hesitate to reach out with any further questions! I can be reached by cell at 215 771 2933 or email at dmessner@securityabstract.com