The Ins and Outs of Shopping for Title Insurance

Shopping for title insurance can be confusing, especially if it is your first time. Though most individuals shop based on price, there are other things that you need to consider before buying one. Keep reading to find out the ins and outs of shopping for title insurance.

How to shop for a title company

Traditionally, title insurance companies were chosen by professionals in the property mortgage process, like attorneys and lenders. However, with the advancement of technology in the recent past, the title insurance industry is encouraging a direct-to-consumer approach. This makes it easier for you to explore title insurance services providers for yourself, which the Federal Real Estate Settlement Procedures Act (RESPA) allows.

If you decide to shop for title insurance, get a list of potential title insurance companies from your lender, family, and even friends. Once you have a list, ensure that you know each company's services and the fees they are charging. The services primarily include document preparation, handling the closing, and policy endorsement, which vary from one company to another.

After this, choose a company to work with, consider your budget and the insurance terms. Once you have selected, notify your lender and schedule a closing meeting. Here, you will discuss their terms, services and the required process. After this, you can go ahead and sign the necessary documents which will mark the end of your title insurance shopping process.

What to look for when shopping for a title insurance

It would be best to consider a few critical things when shopping for title insurance. They include;

Reputation

It is critical to ensure that the title insurance company you choose to work with has an excellent reputation. A great reputation assures you of the outstanding quality of work and transparency, which is vital in title insurance services. One way of assessing this is by checking their online and offline testimonials from their former clients. Excellent reviews are a sign that they will handle your case perfectly without any hitches.

Fees

In most states, title insurance companies are allowed to set their prices. Therefore, it is essential to compare prices across several esteemed title insurance companies before making your final choice. Ensure that the company you choose to work with is transparent on its fee and the services included, which will help you make an informed decision.

Customer service

A property is a long-term investment. Therefore, you will be a customer of the title insurance company as long as you own the property. With this in mind, it would help to buy title insurance from a company with excellent customer care. When calling title insurance companies, get to assess their customer service. To help you in assessment, ask yourself the following question;

• “How kind are the customer service representatives?”
• “Do the representatives answer my questions accurately?”
• “How long do the representatives take to pick my call?”

The answer to these questions will help you decide whether you want a long-term relationship with them.

Location

It is crucial to consider the location of your preferred title insurance company. Ensure that the company is conveniently located for you to visit often. The title insurance acquisition process has some steps that may require you to visit their offices in person hence proximity is key. If the company is far, inquire how they conduct the process online and how the agency ensures the security of your documents.

Make sure to shop around

Title insurance is part of the closing cost of a property. You must pay title insurance to a third party which means that you can shop for it separately. To start the shopping process, ask your realtors to suggest some title insurance providers with whom they have a relationship and know are reliable. Also, it would be a great idea to ask your friends and even lender for suggestions.

After this, visit their websites to get an idea of their services, terms, and reviews from their previous customers. Additionally, you can check them on Google and look at their Yelp reviews for better understanding. Once you have narrowed down the list to around two companies, call them and ask any questions that may not be clear. Finally, go ahead and decide on the company to work with and inform your lender.

Bottom-line

Shopping for a title insurance company can be challenging and stressful. Thankfully, there are ways to go about it that make the process easier and shorter. If you are wondering how to shop for title insurance, go through the points above. They will offer you a perfect idea of where to start.