If eligible, you can receive as much as a 40 percent discount off your new title insurance premium. These discounts apply to both owner’s and lender’s policies. The actual discount amount varies depending on your seller’s original purchase price and your current purchase price.

How long is title insurance effective?

The lender’s policy of title insurance lasts until the mortgage is paid in full. An owner’s policy of title insurance lasts for as long as you or your heirs retain an interest in the property.

Does title insurance cover past events?

Title insurance exists to defend your title in court as it covers defence cost. This policy covers past title problems. It does not cover future events. This policy follows the retrospective effect and addresses all claims related to title defects assumed in past years i.e. prior to the purchase of the property.

What is the difference between owners title insurance and lenders?

Owner’s title insurance protects the owner from claims against the title that predate the purchase of the property, and lender’s title insurance protects the lender. That is the primary difference between the two.

When do you get a title insurance discount?

The actual discount amount varies depending on your seller’s original purchase price and your current purchase price. When refinancing, a “substitution rate” discount is available when a borrower can produce a lender’s title policy issued within the previous 10 years.

What does it mean to have title insurance on a property?

Owner’s Title Insurance is a policy that protects you in case someone tries to make a claim on the property you purchased. The claim on your deed or “the document showing the property was transferred to you” can be anything from previous owners who owe taxes to unknown heirs.

Can a title insurance claim be filed against a seller?

[1] Claims filed pursuant to Lender’s Policies of title insurance generally relate to the priority of the lender’s mortgage on the property. [2] If cost becomes an issue, consider asking the seller to pay for the Owner’s Policy when you are negotiating for the purchase of your property.

How to get title insurance for a refinance?

At your next home purchase, ask when the sellers bought, and if it was less than 10 years ago, ask them for their owner’s title policy or HUD-1 settlement statement. At your next refinance, produce your owner’s title policy and ask for a substitution rate discount.