When is title insurance typically paid?

When is title insurance typically paid?

• A. Annually
• B. Only once, at closing
• C. As part of the mortgage payment
• D. Monthly

Answer: (B)

Title insurance is typically paid only once, at closing, as part of the transaction when purchasing or refinancing property. This one-time premium covers the owner for the duration of their ownership of the property, providing protection against potential title issues that may arise after the purchase, such as undiscovered liens or ownership claims. This structure helps to distinguish title insurance from other types of insurance, which might require ongoing payments. It simplifies the financial aspect for buyers, as they can know upfront the cost associated with securing this important protection without the burden of continuous fees.

Title insurance is typically paid only once, at closing, as part of the transaction when purchasing or refinancing property. This one-time premium covers the owner for the duration of their ownership of the property, providing protection against potential title issues that may arise after the purchase, such as undiscovered liens or ownership claims.

This structure helps to distinguish title insurance from other types of insurance, which might require ongoing payments. It simplifies the financial aspect for buyers, as they can know upfront the cost associated with securing this important protection without the burden of continuous fees.