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How Much Does Title Insurance Cost? + How Rules And Prices Vary By State

Victoria Araj8-minute read

December 14, 2022

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Buying a new home is an exciting venture, but there’s no doubt it can be intimidating to put such a large sum of money on the line. That’s why it’s crucial for you as a new home buyer to invest in safeguarding measures to keep you and your finances protected, even after closing.

Title insurance is a valuable policy that protects both the home buyer and lender  from financial loss caused by title defects. Title insurance is well worth the small investment when it comes to protecting your finances.

Title insurance costs can vary state to state, but we’ll offer you our best estimates and tips when looking for your ideal title insurance policy and your dream home. 

Table Of Contents

    What Is Title Insurance?

    Title Insurance: A form of insurance that protects buyers and lenders from financial loss caused by title defects

    Title insurance is a policy that financially protects home buyers and lenders in the case of a property title defect. The most common type of title insurance is lender’s insurance, which is purchased by the borrower to protect the provider.

    Many title insurance policies cover common disputes filed against a title, including conflicting wills and outstanding liens. For example, you could find out that the seller of your purchased property doesn’t have legal claim to it. That’s when title insurance comes into play.

    What Does Title Insurance Cover?

    After a property is sold, there’s still a possibility of someone challenging the property title. What your title insurance covers will depend on your title company. However, the issues below are typically covered under most title insurance policies:

    • Encroachments
    • Disputes pertaining to property ownership
    • Liens resulting from incomplete contractor payments, unpaid homeowners association dues or other outstanding debts
    • Forged or falsified documents and deeds
    • Other fraud-related disputes

    For example, let’s say you purchase a home that was part of a deceased person’s estate, but an unknown inheritor disputes that they own the home and it was illegally sold to you.

    With a title search, your title company would have found documented proof of the inheritor before the transaction closed. If they failed to find proof, your title insurance would assist in covering costs to settle the dispute.

    Lender’s Title Insurance Vs. Owner’s Title Insurance

    There are two types of title insurance – lender’s and owner’s – and there are some notable differences between the two.

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    Lender’s Title Insurance

    Owner’s Title Insurance

    Provides liability protection for the lender, often for the duration of the mortgage

    Can aid in covering costs of potential title disputes

     

    Doesn’t protect the buyer from potential title disputes

    Usually costs a few hundred dollars

     

    Cost ranges between 0.5% – 1% of the purchase price

     

    Highly recommended but not required

     

    Usually required

    Not always required

    Title search fees are often included in a title insurance quote. This can depend on the insurance provider, but most choose to make it evident.

    How Much Is Title Insurance?

    The cost of lender’s title insurance varies by state, but typically ranges from about 0.5% – 1% of the home purchase price. Owner’s title insurance is separate and costs a few hundred dollars.

    Lender's Title Insurance: Cost ranges from 0.5% - 1% of the sale price

    For example, let’s say your home’s purchase price is $300,000. If you take 0.5% – 1% of the home’s price, the estimated title insurance fee will be around $2,250. 

    What Fees Are Included In Title Insurance Costs?

    Title Insurance Cost Fees infographic

    When you receive a title insurance quote, the included title company fees may be itemized, rather than packaged together in one quote.

    Title insurance quote fees may include: 

    • Title search fee
    • Wire fee
    • Notary fee
    • Endorsement fees
    • Transfer tax
    • Settlement fee
    • Closing protection letter
    • Overnight mail charge
    • Deed preparation fee
    • Government recording charges
    • Email/electronic document fee
    • Document preparation fee
    • Tax and other certificates

     Contact an escrow officer if you have questions about title closing costs.

    Title Insurance Cost By State

    Title insurance costs vary based on location and the price of your home. The title insurance industry is highly regulated, so policies and costs vary from state to state.

    In states like Utah and Texas, title insurance is regulated and fixed by the government. This means all home buyers will pay the same amount for title insurance.

    However, in states like Arkansas and Delaware, title insurance rates are unregulated. This means buyers can shop around and compare title company policy costs to find the best fit. For more information on price regulation, you can go to your residing state’s department of insurance website.

    Title Insurance Rules By State

    Title insurance costs vary by state and title company. However, each state has general title insurance rules that can provide insight into state-by-state pricing.

    State

    Title Insurance Fee Regulation

    Title Search Required Before Title Insurance Is Issued

    State Statutes

    Alabama

    Filed and approved within 60 days

    Yes

    Ala. Code § 27-25-6(1975); Ala. Code § 27-3-7(1975); Ala. Code § 27-25-4(1975)

    Alaska

    Prior approval by state

    Yes

    AS 21.66.390-410. 3 AAC 27.301-399; AS 21.27.010 et seq.; AS 21.66.270; AS 21.27.150(2)

    Arizona

    File rate with state

    Yes

    ARS §§ 20-375 and 20-376.; ARS §§ 20-1561 through 20-1563

    Arkansas

    Unregulated rates

    Yes

    Ark. Code Ann. § 23-103-401 et seq.

    California

    File rate with state

    No

    CIC 12401, 12401.10, 12404, 12413.5; CIC 699 et seq; CIC 12389 et seq.

    Colorado

    File rate with state

    Yes

    CRS §10-11-118; §10-2-401

    Connecticut

    Prior approval by state  

    Yes

    38a-419

     

    Delaware

    Unregulated rates

    Not applicable

    18 Del. C. 1953, § 908; 56 Del. Laws, c. 380, § 1.;

    District of Columbia

    File rate with state

    Yes

    Chapter 50A

    Florida

    File rate with state

    Yes

    FS §877.101, §627.782 and 627.783, §69O-186.003 and 69O-186.004; Chapter 626, Part V; Chapter 624, Part III; Chapter 626, Part V

    Georgia

    Unregulated rates

    Yes

    O.C.G.A. Secs. 33-23-1 et seq.

    Hawaii

    Unregulated rates

     

    Not applicable

    HI Rev Stat § 431:20-102

    Idaho

    Filed 30 days before use

    Yes

    Idaho Code Title 41 Chapter 27

    Illinois

    Unregulated rates

    Yes     

    215 ILCS 155/19; 215 ILCS 155/3; 155/4; 155/16; 155/17

    Indiana

    Unregulated rates

    Yes

    Indiana Code Title 27. Insurance § 27-7-3-22

    Iowa

    State-run

    Not applicable

     

    Iowa Code §515.48(10)(2009)

     

    Kansas

    File rate with state

     

    Yes

    K.S.A. 40-952(c); K.S.A. 40-4903

    Kentucky

    File rate with state

    No

    KRS 304.22-020

    Louisiana

    Filed and approved within 45 days

     

    Not applicable           

    LSA-R.S. 22:1451, et seq.; LSA-R.S. 22:511, et seq.

    Maine

    File rate with state

    No

    24-A MRSA § 2302(1)(D); 24-A MRSA § 1420, et seq. for agents 24-A MRSA § 404 for insurers

     

    Maryland

    File rate with state

    No

    Annotated Code of Maryland, Title 11, Subtitle 4; Title 10, Subtitle 1

    Massachusetts

    Unregulated rates

    Not applicable

    761 Mass. Reg. 21.19

    Michigan

    File rate with state

    No

    MCL 500.7312 and Ch-12 MCL 500.2400-500.2484; MCL 500.7302, MCL 500.7303, MCL 500.7317, CH-12 MCL 500.1200-1247

    Minnesota

    File rate with state

    Yes

    Minn. Stat. 70A; 60K.32

    Mississippi

    Prior approval by state

    Not applicable           

    Miss. Code Ann. § 83-2-3; Miss. Code Ann. § 83-15-3

    Missouri

    Filed and approved within 30 days

     

    Yes

    MO 381.171, 381.181, 381.201, 20 CSR 500-7.100; 381.052, 381.058, 381.115, 381.118, 375.014

    Montana

    File rate with state

    Yes

    33-25-212; 33-17-201;

    Nebraska

    Prior approval by state  

    No

    Neb. Rev. Stat. 44-1997; Neb. Rev. Stat. 44-1982 and 44-19,109

    Nevada

    Prior approval by state  

    Yes

    NRS 692A.120; NRS 692A.100 - NRS 692A.104

    New Hampshire

    File rate with state

    No

    RSA 412, RSA 416-A; RSA 402-J, RSA 416-A

    New Jersey

    Prior approval by state  

    Yes

    N.J.S.A. 17:46B-41 et. seq.; N.J.S.A. 17:22A-26 et. seq.

    New Mexico

    File rates with state

    Yes

    59A-30-6 NMSA 1978; 59A-30-3(C),(D),(E) NMSA 1978; 59A-30-3(G),(I) NMSA 1978; 13.14.2 NMAC

    New York

    Prior approval by state

    Not applicable

    Article 23 Article 64

    North Carolina

    File rate with state

    Yes

    NCGS 58-40-15; NCGS 58-26-10

    North Dakota

    Prior approval for initial filing

    Yes

    North Dakota Century Code 26.1-25; 26.1-20

    Ohio

    Prior approval by state

    Yes

    Ohio Revised Code 3935.03; ORC 3905.02, 3953.01, 3953.21

    Oklahoma

    Unregulated rates

    Yes

    36 O.S. §1435.8(A)(9); 36 O.S. §5001(A)

     

    Oregon

    Prior approval by state

    Yes

    ORS 737.310, ORS 737.320, ORS 737.230; ORS 744.053, ORS 744.086

    Pennsylvania

    File rate with state

    Yes

    Pennsylvania Statutes Title 40 P.S. Insurance § 910-31

    Rhode Island

    File rate with state

    No

    R.I. Gen. Laws §27-9-7; §27-1, §27-2, §27-2.4

    South Carolina

    Prior approval by state

    Yes

    SDCL Title 58-25; SDCL Title 36-13

    South Dakota

    Prior approval by state

    Yes

    Codified Law 44-8-31

    Tennessee

    Prior approval by state and county

    Yes

    Chapter 35 of Title 56 and TN Rule 0780-1-12; Chapter 6 of Title 56

    Texas

    File rate with state

    Not applicable

    Texas Insurance Code §2703; §2651, §2652

    Utah

    File rate with state

    Yes

    R592-3 and 4; 31A-23a-103

    Vermont

    File rate with state

    Not applicable

    Title 8

    Virginia

    Unregulated rates

    Yes

    38.2-4608; 38.2-1822, 1814.1

    Washington

    File rate with state

    No

    RCW 48.29.140; RCW 48.29.147; RCW 48.05.030; RCW 48.17.060

    West Virginia

    File rate with state

    Yes

    W. Va. Code 33-20-3(e); W. Va. Code 33-3-1 et seq.; W. Va. Code 33-12-1 et seq.; W. Va. Code 33-12B-1 et seq.

    Wisconsin

    File rate with state

    No

    Wis. Stat. s. 625, & s. Ins 3.32, Wis. Adm. Code; Wis. Stat. 610.11; 628.03

    Wyoming

    Prior approval by state

    Yes

    W.S. 26-23-325; 26-23-316

    For more information on title insurance pricing, it’s best to contact a recommended title company in your area.

    5 Tips For Shopping For Your Title Insurance Policy

    How To Shop For Title Insurance infographic

    Depending on the state, title insurance premiums may be the same across the board or vary by title company. There are ways to save on your title insurance costs, even in states with highly administered title insurance companies. 

    1. Shop around: If you live in a state with unregulated premiums, research to find the title company with the best deals. Read reviews and get referrals from friends, family and your realtor.
    2. Compare add-ons: Compare and negotiate fees from various title companies.
    3. Negotiate with the seller: Negotiate with your seller on the closing costs. If the seller wants to close the deal fast, they may be open to paying the closing costs themselves. We don’t recommend this strategy if you’re in a competitive seller’s market, however.
    4. Ask for a bundled policy discount: If you require a lender’s policy but also want added coverage with an owner’s policy, see if you can bundle both policies.
    5. Ask for a lower rate: Discuss a lower reissue rate if the seller has owner’s title insurance.

    We recommend working with an experienced real estate agent who knows the most trusted title companies. That way, you can spend less time researching and getting preapproved, and more time touring potential homes. 

    Title Insurance FAQs

    Below are commonly asked questions about title insurance costs.

    Why Is A Title Search Required With A Mortgage?

    When applying for a mortgage loan, most lenders will require you to receive a title search before closing with your escrow company. A property title search includes examining public records of your property by a title company.

    Some issues the title company look for include:

    • False signatures or fraudulent claims made against the property
    • Clerical errors in the courthouse documents
    • Claims for unpaid property taxes
    • Claims for workers who worked on the property but were never compensated
    • Conflicts between former owners over wills

    Most homeowners don’t ever need to use their title insurance, but it’s smart to have protection in the rare case any issues arise.

    Who Usually Pays For The Lender’s Title Insurance?

    The buyer usually pays for the lender’s title insurance. Who’s responsible for paying the premiums for the owner’s title insurance varies by state.

    It’s common for sellers and buyers to split title fees into negotiated terms.

    How Much Are Title Insurance Fees?

    Title insurance fees are usually 0.5% – 1% of the property’s purchase price. Your location, provider and loan amount will impact your total title insurance fees.

    Cost Of Title Infographic Download Button

    The Bottom Line

    Buying a home is a big deal, and it’s important to be legally protected throughout the process, especially with title insurance. It’s also crucial to choose the right title company for the best title insurance cost. Contact Rocket Mortgage® today to help make the home buying process easier.

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    Victoria Araj

    Victoria Araj is a Section Editor for Rocket Mortgage and held roles in mortgage banking, public relations and more in her 15+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.