
How Much Does Title Insurance Cost? + How Rules And Prices Vary By State
Victoria Araj8-minute read
February 21, 2023
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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 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.
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?
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
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.
- 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.
- Compare add-ons: Compare and negotiate fees from various title companies.
- 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.
- 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.
- 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.
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.
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