The cost of a title insurance policy relative to the cost of a property transaction is about one-half to one percent of the purchase price. The premium is based on the purchase price of the property, generally determined by the value of the land plus any improvements.
Who Pays
It’s also important to note that the cost for title insurance may include other services provided by the title company such as the title search or conducting the closing. When comparing one rate to another, be sure to get detailed information on what is included in that rate, so you are comparing equally.
Regulation
In most states, title insurers are required to file their rates prior to usage, with regulators either reviewing those rates before or shortly after they go into use.
State regulators in some states, including Florida, New Mexico and Texas, set mandatory statewide premiums. Other states such as New York, Pennsylvania, New Jersey, Ohio and Delaware also have uniform rates. When shopping in these states, you will receive similar rates for title insurance from each company.
Shop Around
Many consumers rely on their real estate agent or mortgage lender for a recommendation for a title company, however, it important that all homebuyers remember that they have the right to shop for title insurance and to choose their own title agent or company.
