Do Have To Have Title Insurance When Purchasing a Condo?

title insurance for condo

If you’re in the process of buying property and end up choosing a condo, you may have some questions about title insurance. Many of the questions people have, stem from trying to figure out what you must insure, what policy you need, and why.

With a condo, you usually only own from the drywall (“studs in”) of your building inward. The association owns and insures the exterior or (“studs out”). Traditional home insurance covers the entire structure. Fortunately, title insurance for your condo will be no different than a conventional home title insurance policy. This is because the title company makes sure your title is free and clear. The title insurance stays the same whether you’re purchasing bare land, a condo, or a home.

With the wide variety of dwellings and ownership structures, it’s no wonder most of us get confused. But in reality, title insurance isn’t too complicated, provided you know the basics and are in the care of seasoned professionals. Here are some common questions regarding title insurance on a condo.

Why would I need title insurance for a condo?

Any property sale benefits from the title insurance process. And in fact, title insurance for a condo is the same as for a home. Your title insurance company does the same research and provides the same coverage as for a standard home. Even if you only own the inside of your condo, the processes are the same. If there are title insurance terms you don’t understand, simply let us know so we can assist.

Is there a condo-specific title insurance plan?

While there is no condo-specific policy, the coverage is as good for the condo as it is for any other piece of property you would insure.

Does it cost more or less than a home title policy to purchase title coverage on a condo?

The policies are based on a percentage of the property value, whether a house, a condo or bare land. So, the cost will be based on the purchase price.

What if I have a townhome? Will I still need title insurance?

Yes, whether you have a home, a condo, a townhome, or something completely different like a 4-plex, your policy coverage is the same with title insurance. Yes, your home insurance will cover each of these structures differently. The benefit of title insurance is that you insure the title; a property title doesn’t usually change based on what kind of property you insure.

My condo is my second home. Can I just use my primary dwelling title insurance to cover my condo?

No! Title insurance policies only cover the original address the title search was performed on and the policy was issued for. You will need to purchase another title policy for your second home. The purchase will include a title search to verify that your title is free and clear. Upon verification or resolution of any issues discovered, they will insure the title.

Cortes & Hay are here to walk you through the process of title insurance, no matter what type of property you want to insure. We have the expertise and seasoned team to address just about anything you can throw at us. Get in touch with us today!