MICHIGAN

A title insurance policy pays a policyholder if there's anything wrong with the title for a property.  County Recorder of Deeds don't guarantee perfect accuracy in their record-keeping.  This means that an individual with evidence may make an ownership rights claim on your newly purchased home.  Title insurance pays for the cost of "perfecting" your title rights or provides compensation if you lose the property altogether.

 

Typically, you will purchase a policy when you obtain a mortgage as most lenders will require title insurance in order to lend you funds. In most cases, you will need a policy to cover the homeowner as well as the mortgage lender.    Usually you pay for both types as part of your closing costs.

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Title insurance costs vary among states but the typical lenders title insurance cost falls between $500-$1,500 and is based on the amount of money you borrow.  The homeowner's title insurance, which is optional but highly recommended, can fall between $700 and $2,000.  In the larger picture, this minimal expense is well worth the protection of such a large financial purchase.