Understanding OWNER’S Title Insurance in Georgia

What is Owner’s Title Insurance? Why isn’t it covered in homeowners insurance? 

When you’re going through the process of buying a house, the list of closing costs can be overwhelming. As a licensed Georgia real estate attorney, we come across questions about these costs all the time. Questions that come up the most tend to be questions about Title Insurance. 

What is Owner’s Title Insurance? 

Owner’s Title Insurance is insurance that protects you, the homeowner, from issues that could pop up and compromise the title of the property. It protects you in case the person who sold you the home had back taxes owed, or there’s a conflict in the Will. Owner’s Title Insurance protects you against financial losses in these cases. 

Owner’s Title Insurance vs. Homeowners Insurance?

Homeowner’s insurance protects you financially in case something physical happens to the home. For example floods, tornados, hurricanes, trees falling on the roof. Those are the sort of things typically covered by your Homeowner’s insurance. Owner’s Title Insurance covers you against financial damages in case there is an issue with the title of your home. 

Is Owner’s Title Insurance Required? 

Technically, no. In Georgia, Owner’s Title Insurance is not a requirement in order to get your mortgage. It’s still strongly recommended. 

How do I find Owner’s Title Insurance? 

One of the many services we provide at Frank B. Pallotta Law is Title Examination and Title Insurance. Because Owner’s Title Insurance is optional, be sure to take a look around and pick a plan that works within your budget and what kind of coverage you’re looking for. 

How much does Owner’s Title Insurance Cost? 

When you’re buying a house in Georgia, Owner’s Title Insurance can cost from as low as $400 to as high as over $1000. A title insurance premium rate calculator is available here or a quote can be obtained by calling our office at 770-924-1400.

What will my Owner’s Title Insurance cover? 

There are a wide variety of things that can come up and end up costing you money after you’ve purchased a home. When you’re reviewing your policy, these are the things you’ll want to make are on it: 

  • A previous mortgage on the home that was not satisfied or settled. 
  • Unprocessed or dissatisfied foreclosures and bankruptcies. 
  • Property taxes or inheritances taxes that were not paid
  • Liens against the home from previously unpaid contractors, real estate taxes, or utility companies. 
  • Ownership issues, either from conflicting wills, missing heirs, or divorce issues 

Owner’s title insurance can cover all of these situations, typically up to the amount you paid for your home plus the legal fees associated with resolving them. 

Ideally none of these things will come up and you will have a properly Clean Title. But life is messy, and that’s why insurance exists. 

What do I do if I have any more questions?

Give us a call! At Frank B. Pallotta Law we have 20 years of experience helping our clients in Georgia navigate the real estate closing process. Reach out to us with your questions. We’re here to help. 

Understanding LENDER Title Insurance in Georgia

Whether you go on your own or with the help of a real estate agent, buying a house brings with it the list of “dreaded” closing costs. Buying a house is one of the biggest, if not the biggest, investment you’ll make in your lifetime. By the time you’re looking at the closing costs, it can feel overwhelming. 

Here at Frank B. Pallotta Law, we get a lot of questions about the closing costs. Some come up more often than others, especially about Lender’s Title Insurance. 

Lender’s Title Insurance

There are two types of title insurances that will show up as you close on your new home: Lender’s and Owner’s title insurance. Lender’s title insurance is an insurance fee you pay on behalf of your mortgage lender. It protects their interests in the event that an issue arises with the Title of your new home. 

Who does Lender’s Title Insurance cover?

Lender’s title insurance covers your mortgage holder; not you, the owner. It serves to protect the mortgage holder from any financial damages that could occur from a “cloudy” or “dirty” title being sold to you. 

If the Title on the home is not clear, it can cause quite a few problems in the purchasing process. And, for the most part, resolving the title issues will fall on the seller and should be sorted out before you get to the closing portion. The insurance is just in case something goes wrong…

Common problems include: 

  • Conflicting wills, missing heirs
  • Separations and divorces that complicate ownership of the home
  • Liens/Levies from taxes, unpaid utilities, etc.
  • Poor surveying of the property lines

All of these problems would ideally be resolved before ownership of the home is transferred to you, or at least before you get a mortgage on that Title. 

What Title Insurance is for the Owner? 

Title insurance for the owner is called Owner’s Title Insurance. It’s an entirely separate type of insurance and will be a different item on the closing list. Unlike Lender’s title insurance, Owner’s is technically optional, but still highly recommended to have.

What happens if you don’t get Lender’s Title Insurance? 

Most often trying to avoid getting lender’s title insurance will simply result in your mortgage being denied, cancelled, or rejected outright. 

How do I get Lender’s Title Insurance?

Usually your mortgage holder will have a preferred insurance provider. One of the many services we provide at Frank B. Pallotta Law is Title Examination and Title Insurance. How much lender’s title insurance will cost will vary depending on the policy your mortgage lender is requiring and the value of the home. A title insurance premium rate calculator is available here or a quote can be obtained by calling our office at 770-924-1400.

What if I have any more questions?

Give us a call! Frank B. Pallotta Law is a licensed Real Estate Lawyer in Cherokee County, Georgia with 20 years of experience helping our clients navigate the closing process. Reach out to us with your questions. We’re here to help!