Do I really need Title Insurance?

[MULTIZ321]

My wife and I recently purchased an every other year Flex week at Spinnaker Resorts Waterside. We received a letter from the Law Office handling the transaction offering us an owner's title insurance policy for a one-time premium of $50.00.

"The owner's policy insures your deed against any defects in the chain of title, if any, and will continue to insure your deed for the length of time you own your timeshare."

Am asking for advice from Tuggers on whether we really need to purchase this policy.


Thanks

Richard

 

[sernow]

Hi Richard,

I think it really depends on how much you're paying for the week to begin with. It wouldn't make sense for a week for $100, but would make a lot of sense for a week that cost you $10,000. Be sure to check the list of exceptions in the policy to see what's excluded from the policy's coverage.

 

[dukebigtom]

I totally agree.

BigTom

 

[Bill4728]

If not sure if I have this right BUT My understanding is that title insurance we pay you 1 of 2 ways.
1 Pay to fixed the title if after the insurance is issued a problem with the title is found
2 Pay you back the amount you paid for the TS.

Since it could be costly to fix a problem with the title. If you paid very little for the TS, the title issurance would just pay you the cost of the TS and leave you with the title mess. So IMHO, it isn't a good idea to buy title insurance for any TS under $5,000.