Title Insurance Premium Calculator
Use this calculator to estimate the cost of title insurance for your property transaction. Title insurance protects you and your lender from financial loss due to defects in a property's title.
Estimated Premiums:
Understanding Title Insurance
Title insurance is a form of indemnity insurance that protects lenders and/or property owners from financial loss sustained from defects in a title to a property. Unlike other forms of insurance that protect against future events, title insurance protects against past events that could affect the property's title.
Why is Title Insurance Important?
When you purchase a property, you expect to receive clear ownership. However, there can be hidden issues with a property's title that may not be discovered until after the sale. These issues, called "defects," can include:
- Errors in public records
- Forged documents
- Undisclosed heirs or prior owners
- Liens (e.g., unpaid taxes, contractor bills)
- Boundary disputes
- Fraudulent transfers
Without title insurance, you could be responsible for legal fees to defend your ownership or even lose your property and the money you invested in it.
Types of Title Insurance Policies
There are two main types of title insurance policies:
- Owner's Policy: This policy protects the homebuyer (you) for as long as you own the property. It covers losses and damages up to the purchase price of the home, defending your ownership rights against claims arising from past title defects. While optional, it is highly recommended for your protection.
- Lender's Policy: This policy protects the mortgage lender's investment in the property. It ensures that the lender has a valid, enforceable lien on the property and covers them up to the amount of the loan. If you are financing your home purchase, your lender will almost certainly require you to purchase a lender's policy.
When both policies are purchased at the same time (known as "simultaneous issue"), there is often a significant discount on the lender's policy premium.
Factors Affecting Title Insurance Premiums
The cost of title insurance is typically a one-time fee paid at closing. Several factors influence the premium amount:
- Property Purchase Price: This is the primary factor for the Owner's Policy. Higher property values generally result in higher premiums.
- Loan Amount: This is the primary factor for the Lender's Policy. Higher loan amounts lead to higher premiums for the lender's coverage.
- State and County: Title insurance rates are regulated at the state level and can vary significantly by state and even by county. Some states have fixed rates, while others allow for competitive pricing.
- Policy Type: Whether you purchase an Owner's Policy, a Lender's Policy, or both (simultaneous issue) will impact the total cost.
- Reissue Rate Eligibility: If the property has been insured within a certain period (e.g., 5-10 years), you might be eligible for a "reissue rate" or "prior owner discount," which can reduce the premium.
- Endorsements: Additional coverage for specific risks (e.g., zoning, environmental protection) can be added to a policy for an extra fee.
How to Use This Calculator
Enter your property's purchase price and your loan amount. Select the type of policy you need (Owner's, Lender's, or Both) and indicate if you believe you are eligible for a reissue rate. The calculator will provide an estimated premium based on illustrative rates. Please remember that these are estimates, and actual costs will vary based on your specific location, title company, and policy details.
Disclaimer
This calculator provides estimates based on simplified, illustrative rate structures and does not account for all state-specific regulations, local fees, or specific title company pricing. Actual title insurance premiums and closing costs can vary significantly. Always obtain a formal quote from a licensed title insurance provider for accurate pricing.