What is Title Insurance?
Title Insurance is the type of insurance that covers your ownership interest in the property against financial loss due to legal defects. In other words, if there are liens that were not paid or potential undisclosed sellers that are now claiming interest to your property, your title insurance will defend you in the lawsuit and reimburse for any actual monetary loss up to the amount of your policy.
Title Insurance premium, unlike other insurance premiums, is a one-time payment, in the amount of approximately 1% of the sales price, (CLICK HERE TO GET THE EXACT AMOUNT)
One-time fee covers you for as long as you, the owner, or your heirs have interest in the property. The amount of insurance for the Owner’s Policy is based upon the full consideration (generally the sales price); however, the buyer may choose to obtain a greater amount of insurance by paying the appropriate premium based on the larger insurance amount. Buyers usually ask for more insurance when they expect the value of the real estate to increase dramatically in a short period, especially when the buyer plans on making significant improvements to the real estate, thereby increasing its value. The Lender’s Title Insurance is purchased by the buyer/borrower and is usually required as a condition of the loan. This is a separate policy that is usually paid for by the borrower, but provides no protection for the property purchaser. For the purchaser to obtain title insurance, a separate Owner’s Policy must be issued. Call us 215-383-5454 or GET A FREE QUOTE – click here
Pennsylvania does not require the purchaser to obtain an Owner’s Title Insurance policy, however, Pennsylvania Insurance laws do require the purchaser to sign a “Waiver of Owner’s Title Insurance” form if the purchaser pays for a Lender’s Title Insurance policy, but waives to obtain an Owner’s Policy. An Owner’s Policy offers you protection for as long as you or your heirs have an interest in the property.