YOU ASK:

How much is title insurance?

WE ANSWER:

The premiums may vary from state to state and city to city.

In general, the title insurance premiums will come down to about one percent of the property's purchase price. This is calculated on a per $1,000 rate. For example, $10 for every $1,000 worth of the property. Thus, the value of your property is one major factor with regards to the cost of the title insurance.

Depending on the area where the property is located, the insurance commission may regulate the fees. There are also areas where it is the agent that sets and negotiates for the fees.

The question on how much title insurance would cost depends on what kind of rate is being talked about.

  • Basic Rates. This is for a purchase transaction. Calculations are based on the Mortgage Amount and the Purchase Price.
  • Re-Issue Rates. This also covers a Purchase transaction but also is concerned on whether the buyers can obtain a backtitle from the sellers. This is cheaper than the basic rates.
  • Refinance rates. This provides for the insurance that is valued at the amount of mortgage loan the current owner has. This rate is also cheaper than the basic rate.
  • New construction rates. This will insure against losses while the property is being constructed. Since it does not cover a structure that has already been fully finished, this rate will come up much lower than standard rates.

Premiums for title insurance are paid only once and it will remain effective for as long as you, and your heirs, have an interest in the property.

The cost of title insurance would include the insurance premiums for the protection of the title, as well as service fees and other related underwriting costs. The fee or premium will also cover the cost of the title search or examination fees.

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