{"id":715,"date":"2009-10-03T13:35:01","date_gmt":"2009-10-03T18:35:01","guid":{"rendered":"https:\/\/www.realty.com\/blog\/uncategorized\/the-re-issue-rate-savings-on-title-insurance"},"modified":"2009-10-03T13:35:01","modified_gmt":"2009-10-03T18:35:01","slug":"the-re-issue-rate-savings-on-title-insurance","status":"publish","type":"post","link":"https:\/\/www.realty.com\/blog\/housing-news\/the-re-issue-rate-savings-on-title-insurance\/","title":{"rendered":"The Re-issue Rate: Savings on Title Insurance"},"content":{"rendered":"

You can save a lot by holding that property for less than a year.<\/em><\/p>\n

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Real estate investors, who usually flip properties for handsome profits, have a trick when it comes to saving on title insurance: asking a re-issue rate. Title transfers are usually insured by a title company from seller to buyer. The longer the property is held, the higher policy costs shall be paid. However, real estate investors only hold the property less than a year (depending on market conditions, of course) so the full cost of a title insurance won’t be practical – since there’s a very low risk that something might happen within twelve months.<\/p>\n

As an alternative, they ask for a re-issue rate on the title insurance; when there’s another policy issued on the same property within the last few years. They can expect a discounted rate because only the claims that will arise from the time they possess the property will be covered by the re-issued policy. Any claim that occurs before that period will be covered by the previous owner’s insurance already.<\/p>\n

But what if you’re not an investor?<\/em><\/strong> There’s nothing to worry about. If you’re refinancing, you can ask for a lower rate from the issuing company. Discounts can range between 30 and 40 percent. If you paid for a full title search and insurance policy in your pre-refinancing period, the new insurance will cover the date that you will begin refinancing.<\/p>\n

Beware of scams though.<\/em><\/strong> Many insurance companies are deliberately misinforming homeowners about this cost-effective technique. They either hide the provision, or simply give a lower discount than what homeowners are actually eligible for. In some states, these companies are not legally required to disclose any re-issue rate information. Therefore, the best solution is to ask the issuing firm. Scrutinize the details of the re-issue rate. And if you’re ineligible, ask them to explain the reasons why.<\/p>\n","protected":false},"excerpt":{"rendered":"

You can save a lot by holding that property for less than a year. Real estate investors, who usually flip properties for handsome profits, have a trick when it comes to saving on title insurance: asking a re-issue rate. Title transfers are usually insured by a title company from seller to buyer. The longer the …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-715","post","type-post","status-publish","format-standard","hentry","category-housing-news"],"_links":{"self":[{"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/posts\/715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/comments?post=715"}],"version-history":[{"count":0,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/posts\/715\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/media?parent=715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/categories?post=715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/tags?post=715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}