Not sure how title insurance works

Hi folks I am unsure about Title Insurance and how it works and why it’s so darn expensive. A lender quoted me almost $2200 for Title Insurance for a $483K mortgage. He also told me to feel free to shop it and he can use anyone I come up with. How do I even go about finding a reputable Title insurance provider? This $2200 seems crazy to me. But maybe I just don’t get it. Thanks

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Jana Christo is a business owner, real estate investor, and property manager. She has 16 years of experience in most areas of real estate.
During the last recession, she was also the managing partner for a company that bought and rehabbed properties from the court foreclosure auctions. Today, she manages her own portfolio of rental properties and shares her experience on

1 thought on “Not sure how title insurance works”

  1. I assume that you are referring to the Lender’s Title Insurance Policy, which is paid by the buyer and it covers the amount of the mortgage for the length of the loan. The seller also pays Title Insurance (Owner’s Title Insurance) which covers the entire purchase amount for as long as the owners and their heirs own the property. Title insurance is coverage against defects in the title.
    In Florida and some other states the rates are regulated so they are the same no matter which Title company is used.
    Here is a link to the Florida Division of consumer services for more information:
    We have a Seller Net Estimate calculator, that calculates the Owner’s Title Insurance.

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