Title insurance premiums are paid when?

Title insurance premiums are paid when?

• A. Monthly
• B. At closing
• C. At renewal
• D. Once upon issuance of the policy

Answer: (D)

Title insurance is a one-time premium paid to obtain the policy, and it is paid when the policy is issued—typically at closing. This premium buys coverage for the duration that the insured holds an interest in the property, and no ongoing payments are required for that policy. It’s not paid monthly, at renewal, or after the policy is issued, because the policy provides permanent protection once issued (subject to any endorsements or renewals that are separate transactions). In practice, the borrower (and often the lender) pay the premium as part of the closing costs so the policy becomes effective at issuance.

Title insurance is a one-time premium paid to obtain the policy, and it is paid when the policy is issued—typically at closing. This premium buys coverage for the duration that the insured holds an interest in the property, and no ongoing payments are required for that policy. It’s not paid monthly, at renewal, or after the policy is issued, because the policy provides permanent protection once issued (subject to any endorsements or renewals that are separate transactions). In practice, the borrower (and often the lender) pay the premium as part of the closing costs so the policy becomes effective at issuance.