Help! Closing on a new condo, do I need “title owner’s coverage”?

[Mark K.]

Hello, I am about to close on a newly built condo unit in a new building in Brooklyn, NY. No one has ever lived there so I am womdering do I need to purchase “title owner’s coverage”?

Since this is for when someone sues and says they have a claim against the home from before the homeowner purchased it, would I need this if no one has ever lived there?

Note that this would be my primary residence and not a rental property. 

It will set me back $2,400 which quite frankly I’d rather not pay unless I absolutely need to. Can you give me your thoughts on this? Thanks im advance!

[Russell Brazil]

If you buy owners title insurance.....you wont need it.  If you dont buy it...you will need it.

There are a multitude of things that it covers.  There are times I forgo owners title insurance, however I fully understand those risks when I do, and am capitalized enough to easily handle tens of thousands in legal bills when they arise.

Insurance is all about risk mitigation.  Insurance covers the costly unlikely for a cheap cost. This is any type of insurance...title, fire, auto, etc.  Skip of you are ok taking on the risk, or dont if you are risk averse.

@Tom Gimer always has good title insurance scenarios, I bet hes got a new construction one to tell.