Buying a home for the first time is a nerve-wracking experience, and it can come with a host of frustrations.
When every other part of buying a home is so expensive already, you may wonder if you can skip out on things that do not seem as important, such as title insurance. But should you?
Protections of title insurance
Zillow takes a look at the average homes in Florida. The average cost of a home sits at around $400,000, which is a huge sum of money for anyone to pay. The downpayment on a house alone can take years to save up for.
When looking into ways to cut costs, you might consider opting out of things like title insurance. But first, you need to understand exactly what this insurance is and what it does.
Title insurance helps to protect your real estate investments. In specific, it allows you to protect your property against claims that other people may make against it.
For example, say someone claims that your house sits on property or land that they own. Title insurance will either provide you with compensation for that land, or it provides you with representation.
No worries about price gouging
Fortunately, Florida law dictates the price of title insurance. This makes it harder for agents to attempt to price gouge you. First-time homebuyers will also often find this insurance one of the most affordable parts of the home-buying process.
Title insurance typically costs between $500 and $1,500, but it is possible to tailor a policy to suit your property and needs more directly.