Why it is Important to Buy an Owners Title Insurance Policy

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In many instances when a homebuyer comes to the closing table to sign what seems like a mountain of paperwork, legally binding them to a property, they don’t always understand the extra $1000-$5000+ for “Title Insurance.”  What many people don’t understand, or sometimes it is not explained that Title Insurance is a 1 time fee that protects homeowners.  There are also different levels of Title Insurance coverage.  You have the “Standard Owners Title Policy” and the “Enhanced Owners Title Policy.”  There are major differences and I will discuss them shortly.  When the new TRID/CFPB regulations go into effect (proposed October 3rd) the new forms replacing the HUD-1 paint a different picture on the Owners Title Policy.  Here is why it is important to buy an Owners Title Insurance policy and how it can protect you as a homeowner.