6 Questions to Ask a Title Insurance Company

Title insurance can seem like an afterthought to home buyers. But regardless of whether you’re the real estate agent or the home buyer, knowing which title insurance company to choose can make a big difference, especially if any problems arise.

Let’s talk about how you can choose the right title insurance company.

First, Do Some Background Research

Most searches for information start on the Internet, and so will your title insurance agency search. You can ask friends and colleagues for recommendations, but be sure to back this up by looking online.

What specifically should you look for? A title agency that has a good reputation and a decent amount of experience. Ideally, they’ll also be local (or nearby), with a good understanding of the local real estate picture.

Once you’ve narrowed down your list, it’s good to shop around a bit and interview different title insurance agencies. Here are a few things you should ask.

6 Questions to Ask a Title Insurance Company

How much does title insurance cost? 

Depending on the state where you’re located, rates can vary between title insurance agencies. In Oregon, Idaho, and Washington, title insurers can set their own rates (although they may have to register them with a state board). So most experts advise comparing rates from several companies. 

What’s included in your fee?

The least expensive insurance fee doesn’t always mean it’s the best deal! As with any major purchase, you’ll want to find out what services are included in the price. You don’t want to be hit with a surprise fee.

What’s included in this title insurance policy?

Generally speaking, title insurance protects home buyers against things that happened in the past that may interfere with the buyer’s legal possession or use of the home. These can range from inaccuracies in the paperwork to fraudulent property sales. Other common issues include undisclosed heirs, liens, mineral rights, or easements. 

However – depending on the title insurance company and policy – not all of these are automatically included in title insurance coverage. Some agencies write overly broad exception clauses in their policies, which can leave the homeowner unprotected. So before signing anything, make sure everything is covered up to a reasonable standard. For more information, see:

• Idaho Department of Insurance
• Washington State Office of the Insurance Commissioner
• Oregon Insurance Information Council: Title Insurance

Are you affiliated with a lender, builder, or real estate company?

This is more for home buyers. Ideally, your title insurance company is a neutral third party in the transaction. While home buyers certainly can successfully use a title company that’s affiliated with their real estate agent or mortgage lender, they may get a better deal from another company. This isn’t a deal breaker, but it’s worth knowing.

What’s your title search process like?

This is all in the interests of avoiding unpleasant surprises after you’ve bought the house. Essentially, you want to be sure you’re dealing with a professional, thorough, and reputable company.

Look for a title company that can explain each step in their title search process and why it’s important. You don’t want a company that skimps on their search, as this could cause problems later. While it’s not uncommon for title issues to surface during a search, many times they can be remedied fairly quickly.

What happens if there’s a problem before or after a sale?

You also want a clear picture of the communication you can expect before, during, and after the title search process and what the next steps will be if issues arise.

Title insurance is required for most real estate purchases. By doing your research and asking the right questions, you can find a title insurance company that will protect your interests or those of your clients.

Got More Title Insurance Questions?

We’re happy to help! Contact AmeriTitle today and let’s find your answers!