How much does the typical title insurance cost?


The standard or typical title insurance will cost differently from state to state and from one insurance company to another. There are states where the premiums are being regulated while there are other states that do not have such regulations on the premiums.

Generally, the standard coverage for title insurance will cost from half a percent to 1 percent of the purchase price of your home. For instance, if you bought a home that costs $200,000, the cost of title insurance would be around $1,000 to $2,000.

Most home owners may decide on a title insurance company based on the recommendation of their agent, realtor or broker. But if you are concerned about premiums, it is best to shop around. This is because mortgage brokers and realtors get commissions or incentives for every business they send to an insurance company. Of course, this would add to the premiums you pay for the insurance.

To find the best deal, compare the different quotes you get from three or four title insurance companies. This way, you would have an indication of how much title insurance will cost.

When shopping around you should also:

  • Know what the policy covers - the coverage may vary from policy to policy.
  • Talk to the title insurance company that currently the property you're planning to buy. You can ask them if they can give discounts if you will continue getting their services. They may provide such discounts since they have already completed the title search on the property, anyway.
  • Talk with the seller (if you are the buyer) or the buyer (if you are the seller) to try to convince them to carry this cost. Depending on your negotiations as well as any leverage you have, you may request the other party to pay for the insurance, or at least share in the cost. In most states, it really depends on the negotiation between the seller and the buyer as to who will cover what costs.

Another consideration is whether you would need typical title insurance or if it would be better to get extended coverage on the title insurance. Of course, extended cover will be more expensive, but it also provides more benefits for you in terms of title protection.

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