Title insurance protects your ownership rights – but where does the premium you pay actually go? Unlike auto or homeowners insurance, title insurance is a one-time premium paid at closing that covers the property for as long as you (or your heirs) own it.
The title search and examination
Most of the premium covers the work done before your policy is ever issued – researching public records to confirm a clear chain of ownership, checking for liens, judgments, unpaid taxes, and other claims against the property.
Underwriting the risk
A portion goes to the title insurance underwriter, the company financially backing the policy and standing behind it if a covered claim arises after closing.
Agent and closing services
The remainder covers the local title agent’s work – coordinating the closing, preparing documents, and handling the disbursement of funds.
A policy that lasts
Unlike most insurance, an owner’s title policy is paid once and protects for as long as you own the property – no renewal premiums required.
Questions about your closing costs? Call Dockside Realty at 850.225.9785 or email christine@docksiderealtyinc.com.