Financial Planning for Generation X & Y Women
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Expert Q&A Archive

Is title insurance necessary when purchasing a home?
Hi. Is the title search not enough [when purchasing a house]? Do we have to buy the title insurance as well? If so, how do we go about doing that? Does $1,200 sound reasonable? That seems to be the quote Iím continuing to get while shopping around.
Gail V. Marquet:
expert info »
You really should have title insurance in case something questionable comes up while you own the home or when you sell it. It's a very wise investment. Before paying that amount, I'd do considerable shopping around.
Susan Garcia:
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Title Insurance is a sound thing to have since you never know what may come back on the title search, especially on properties that have been owned over several years. Title insurance protects you if there is any dispute over who has ever owned the land and if it could be legally sold. If there is a problem, it pays for the lawsuit and the research.

$1200 sounds a little high, but it often depends upon the state. You should ask for a competitive bid or why it is a typical cost.
Delores Lenzy - Jones, CPA, CIA:
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I would recommend title insurance.
Bettye J. Banks:
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Title insurance makes sense because of unforeseen claims to the house and/or land itself or errors and/or omissions to the search.

Granted the search usually finds any problem(s), but the insurance protects you.
The cost is the cost and essentially what the market will bear.

Have you checked online for title insurance? Not very often, I'm afraid, but sometimes you can find a better rate.