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Opt for Optional Insurance

Q. Is title insurance optional? That is, if I want to buy a home and take out a mortgage, do I still need to have title insurance on the property I am buying?

A. Let’s be realistic about insurance, be it title insurance or any other insurance. The truth is that almost ALL insurance is optional. After all, you don’t HAVE to HAVE it. An exception is that in order to be entitled to drive an automobile, most states (probably all states but I haven’t checked with all of them) require you to have some minimal coverage. However, if you want uninsured motorist protection to protect you against someone who is driving a car and is NOT insured, then buying it is also optional. The state of Florida does require folks who live in a condominium or homeowners’ community to have some—but that, too, is minimal. Life insurance is optional. Homeowners insurance is optional unless your lender makes you take it to protect THEM. That kind of insurance is called Mortgagee insurance and it definitely does not protect the homeowner. Excess automobile insurance is optional. Flood insurance is optional. Theft insurance, hazard insurance, windstorm insurance, and most all other kinds of insurance are optional. HOWEVER, why would anyone want not to have those insurances with one of them being—a critically important one in my mind—is title insurance.


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