Is Your Title Insurance Too High?
Title insurance premiums vary from under $2 per thousand in regulated states to over $6 per thousand in others. If you suspect your title insurance is overpriced, here's how to check using your state's actual benchmark.
How title insurance pricing works
Title insurance pricing falls into two categories: promulgated-rate states (where the state sets the rate and all companies charge the same) and file-and-use states (where each company files its own rates). In promulgated-rate states like Texas, Florida, and Ohio, you can verify the exact rate. In file-and-use states, you can shop for lower premiums.
The two policies — owner's and lender's — are priced differently. The owner's policy is based on the purchase price; the lender's on the loan amount. When both are purchased simultaneously, the lender's policy should be heavily discounted (the 'simultaneous issue' discount).
Red flags that your title insurance is overpriced
Your title insurance may be too high if: the rate per thousand exceeds your state's benchmark, the simultaneous issue discount wasn't applied, you weren't offered a reissue rate discount on a resale property, or the title agent added separate 'title search' and 'title examination' fees that together exceed $300.
What to do about it
In file-and-use states, get quotes from other title companies. In promulgated-rate states, verify the rate matches the state schedule. In all states, confirm the simultaneous issue discount was applied and ask about reissue rate discounts.
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Frequently asked questions
How much should title insurance cost?
It depends on your state. In regulated states like North Carolina, expect ~$2.17 per thousand. In Texas, ~$4.94 per thousand. In unregulated states like California, rates vary from $0.75 to $2.50 per thousand depending on the company.
What is the simultaneous issue discount?
When you buy both owner's and lender's title insurance at closing, the lender's policy is issued at a steep discount — often a flat $100 to $200 instead of the full premium. This should be automatic but verify it on your Closing Disclosure.