Buying a home by the beach in Narragansett is exciting, but a hidden claim on the property can turn your dream into stress fast. If you are planning to finance, your lender will require title insurance. The question is how to protect yourself too. In this guide, you will learn what title insurance is, how it works in Rhode Island, and the local issues to watch in coastal Narragansett so you can close with confidence. Let’s dive in.
What title insurance covers
Title insurance protects you against past problems with ownership that were unknown at closing. These issues often hide in public records or old documents and only surface later. With a policy in place, the insurer typically covers legal defense and valid losses tied to covered title defects.
Common covered risks include:
- Forged or improperly executed documents in the chain of title
- Errors in public records, such as mis-indexed deeds
- Unknown heirs or probate issues that result in an ownership claim
- Undisclosed liens that existed before closing, such as tax or judgment liens
- Certain survey-related mistakes if you add the right endorsement
What title insurance does not cover
It is just as important to know what is outside the policy. Title insurance does not insure the property’s condition or your future plans for it. It focuses on ownership and recorded rights as of closing.
Typical exclusions include:
- Zoning or building-code compliance problems
- Environmental issues or contamination
- Anything listed as an exception on your title commitment, such as known easements
- Matters a current survey would reveal, unless you purchase a survey endorsement
- Flooding or earthquake risk
- Post-closing events, such as a new lien filed after you buy
Ask your title company to explain each exception on your commitment and which endorsements can narrow the gaps.
Two policies you will see
There are two types of title insurance in a Rhode Island purchase. Your lender will almost always require one, and you choose whether to buy the other. Both are paid once at closing.
- Lender’s policy protects the lender up to the loan amount. It allows the lender to recover losses if a covered title defect threatens their security interest.
- Owner’s policy is optional but highly recommended. It protects your equity up to the purchase price and lasts as long as you or your heirs hold title. It is a one-time premium, not a recurring fee.
Rates vary by insurer and state. In Rhode Island, title insurers are licensed and regulated by the Rhode Island Department of Business Regulation. It is smart to compare quotes and coverage, not just price.
Why Narragansett buyers should pay attention
Coastal ownership in Washington County can be complex. Narragansett properties sometimes include shoreline rights, public access questions, and floodplain considerations that deserve a closer look during title review.
Key local factors:
- Waterfront rights and access. Title reviews for shoreline parcels should check for public trust rights, dedicated public ways, or municipal easements that allow public access across or along the property.
- Coastal rules. The Rhode Island Coastal Resources Management Council (CRMC) and local ordinances may affect structures, repairs, and reconstruction after storms. These are usually outside title coverage but can appear as recorded restrictions or permits.
- Flood risk. Many Narragansett homes sit in FEMA Special Flood Hazard Areas. Lenders require flood insurance if a structure is in an SFHA. Title policies typically exclude flood-related matters and may note them as exceptions.
- Municipal and tax items. Look for sewer betterments, special assessments, and tax liens. These must be cleared or prorated before closing.
- Older chains of title. In historic coastal areas, unprobated estates or unclear heir interests can surface. Title insurance exists to address the risk of unknown heirs and similar defects.
Records for Narragansett are kept at the Town’s Land Evidence office. A thorough search can also include state-level filings like tax or judgment liens and UCC records.
Endorsements and gap coverage
Endorsements modify a base policy to address common concerns. They cost extra but can be worth it.
Popular options include:
- Survey endorsement to address boundary and encroachment matters shown on a current survey
- Access endorsement if there is any question about legal access to a public road
- Zoning-related endorsements for certain properties when available
Ask which endorsements fit your property type, especially for waterfront or condominium purchases. You can also ask about gap coverage, which protects the short period between signing and recording in case a document was recorded but not yet indexed when the search was done.
Typical timeline in Narragansett
Once your offer is accepted, title work starts. The schedule can vary based on property complexity and how quickly issues are cleared.
- Open title order and search, 1 to 7 business days. The title company reviews the Town of Narragansett’s land records and state filings. Coastal or complex histories can take longer.
- Title commitment issued, usually within 1 to 2 weeks. The commitment lists the requirements to issue the policy and any exceptions.
- Clearing title, 1 to 3 weeks or more. Payoffs, tax liens, judgments, or missing releases must be resolved. Probate or easement disputes can add time.
- Survey and endorsements, timeline varies. For waterfront parcels, hire a surveyor experienced with tidal boundaries and the mean high-water line.
- Closing and recording. Policies are issued after documents record with the Town. Funds are disbursed at settlement.
- Post-closing delivery. Your final owner’s policy usually arrives days to weeks after recording is confirmed.
Routine residential purchases often complete title work in 1 to 3 weeks. Older chains, floodplain questions, or coastal access issues can extend the process.
Costs and who pays in Rhode Island
Title insurance premiums are one-time costs paid at closing. The lender’s policy is based on the loan amount. The owner’s policy is based on the purchase price. Who pays for which policy is negotiable in Rhode Island, so confirm your contract terms early.
To compare quotes, look at:
- Premiums for both policies
- Endorsement options and costs
- Service speed and local expertise
- The underwriter’s claims-paying strength
Smart steps for Narragansett buyers
Use this checklist to stay in control and avoid surprises:
- Ask for the title commitment early. Review all exceptions, including easements, rights-of-way, deed restrictions, and municipal assessments.
- Consider an owner’s policy. It is a one-time purchase that protects your equity for as long as you hold title.
- Order a current survey. For waterfront properties, ask for the mean high-water line, any bulkhead, encroachments, and how riparian or littoral rights are described.
- Confirm flood status. Check whether the structure is in a FEMA Special Flood Hazard Area and what your lender will require for flood insurance.
- Verify municipal items. Ask the Town of Narragansett if there are unpaid or upcoming assessments that could become liens.
- Clarify who pays. Decide in your offer who will pay for the owner’s and lender’s policies.
- Shop beyond price. Compare responsiveness, local knowledge, and coverage. Ask for a sample commitment so you know how exceptions are presented.
Questions to ask your title company:
- What exceptions are you seeing on this property and are any specific to coastal parcels in Narragansett?
- Which endorsements do you recommend, such as survey or access?
- How long do you expect to clear title based on what you see?
- What are the one-time premiums for both policies, and how do endorsements affect cost?
Refinancing later
If you refinance, your new lender will require a new lender’s policy. Your owner’s policy remains in effect and continues to protect you. You would only consider buying a new owner’s policy if you want a higher coverage limit tied to a later value.
Bringing it all together
Title insurance may not be flashy, but it is one of the most important protections you can buy at closing. In Narragansett, coastal features, floodplain rules, and older chains of title make a careful review even more valuable. When you pair a strong title company with a current survey and the right endorsements, you reduce risk and gain peace of mind.
If you want local guidance on how title insurance fits into your Narragansett purchase, connect with a team that handles coastal transactions every week. Reach out to Devin Sheehan to walk through title steps in your Digital Buyers Consult and line up a smooth, on-time closing.
FAQs
What is title insurance and why do Narragansett buyers need it?
- It is a one-time policy that protects against past ownership defects that were unknown at closing, which is useful in coastal areas where older chains of title and shoreline rights can complicate records.
What is the difference between a lender’s policy and an owner’s policy?
- The lender’s policy protects the lender up to the loan amount and is usually required, while the owner’s policy is optional but protects your equity up to the purchase price for as long as you or your heirs hold title.
How much does title insurance cost in Rhode Island and who pays?
- Premiums are paid once at closing and are based on the loan amount for the lender’s policy and the purchase price for the owner’s policy, and payment is negotiable in Rhode Island.
Does title insurance cover flood zones or CRMC regulations in Narragansett?
- No, title insurance typically excludes flood risk and zoning or coastal-use compliance, though flood insurance may be required by your lender if the structure is in a Special Flood Hazard Area.
Do I need a new survey for a waterfront property in Narragansett?
- It is wise to order a current survey that shows the mean high-water line and any encroachments, and then consider a survey endorsement to extend coverage to what the survey reveals.
What happens if a title issue is found before closing?
- The title company and sellers work to clear it, which can include paying liens, recording missing releases, or addressing probate issues, and closing may be delayed until the defect is cured.
If I refinance my Narragansett home, do I need new title insurance?
- You will need a new lender’s policy for the new loan, but your owner’s policy stays in force and continues to protect you without repurchasing it.
