Title insurance

Title insurance protects a property buyer from financial loss due to defects in a title to a property.

If I were buying a property from another person, I would want insurance indemnifying me in case the seller did not have clear title, or had legal judgments affecting the property, etc.

I am in the process of buying a newly built home in a new housing development from a large nationwide home building company. Would you think there is the same need for me to buy title insurance?

And if the exposure to loss is reduced versus a more typical home purchase, do you think the title insurer reflects that in its rating? (I can guess the answer, but I’d be curious if someone has direct knowledge.)

Pretty sure title insurance is required to protect the lender. Are you buying it with all cash?

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John, yes. There is no lender.

When I sold my home they did a title search
Wouldn’t the insurance be redundent

There was a 20 year old lien, from a defunct bank, that was never cleared properly, after a refinance. That was fun. Had proof it was paid off, though not the final.payoff letter from them

From google:

Do I Need Title Insurance When Paying Cash For a Home? No , but it is a wise idea. When you pay cash for a home, you may think it’s permanently yours and no one can take it. However, if there’s a problem with the title it can threaten your ownership rights.

So short answer is no, you don’t need title insurance if you’re paying all cash. Whether there are rate differences based on specific properties would likely depend on the rating plan of your title insurer. Not sure what they usually segment on.

If the prior owner had an undetected lien, doesn’t it protect the new buyer from that headache?

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yeah, I mean it depends on the buyer’s risk appetite. In this case since it’s a new build the risk is less likely

Missed that

There could still be a title dispute about the land, though.

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before answering, what is the cost of the insurance? what is the usual bad event cost, and what does the worst bad event cost?