1st $100,000 is $3.50 per $1,000 of coverage;
Over $100,000 and up to $5 million is $2.00 per $1,000;
Over $5 million and up to $10 million is $1.75 per $1,000;
Over $10 million and up to $15 million is $1.50 per $1,000; and
Over $15 million is $1.25 per thousand.Using our example above, $100,000 of owners title insurance will cost you $350. If you want $200,000 of coverage, then the first $100,000 will cost you $350, and the next $100,000 will cost you $2 per thousand dollars of additional value, or $200. Your total insurance premium will be $550. For an extra $200, you buy peace of mind that if there is a title defect, you will be protected to the full value of your property, not just the purchase price. Make sure, though, that your title insurance policy does not exclude coverage for problems caused by defective foreclosures.
(A related issue has to do with redemption bonds. That is, how do you protect yourself if the former owner redeems? That is not a title insurance issue, because the title policy will say it does not protect you from redemption.
Yes, there are redemption bonds available. In my experience, they protect ONLY the lender who loans money against property that has an outstanding right of redemption. Purchasers cannot buy a redemption bond for their own protection. In addition, the redemption bond usually has a maximum amount of 140% of the purchase price.)Think about buying a little extra title insurance even if you are not concerned about a foreclosure being set aside. In today's climate, real estate price are dramatically depressed. BUT, a title problem might appear five or ten years from now, when your property is much more valuable than the original purchase price. Make sure you are completely protected now, and into the foreseeable future.
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