How Are Title Insurance Rates and Fees Determined?

insurance rates

Title insurance fees don’t have to be a mystery.

Title insurance can be a tricky subject, and many homeowners often wonder who determines the rates and fees associated with title insurance and searches. Other buyers and sellers simply accept the fees set by title insurance companies without question. The answer to this question is not as simple as you might think. Title insurance fees can vary significantly from state to state, and not all states set the fees by law.

State By State

Title companies in many states set their own rates and then file the fees with their state insurance commissioner, assuring that the fees must be adhered to. In other states the title insurance fees are set by state law, but the title insurance company can often charge a higher rate if it so desires.

Questions to Ask

You may want to ask if your title insurance company is charging the lowest rate allowed by state law, otherwise you may also want to shop around for the best title insurance closing fees. Since many closing costs are not negotiable, even minimal savings can be worth your time and effort to find the best insurance rates. Keep in mind that many title insurance companies combine insurance premiums together with closing, search and exam fees. Your rate will therefore go up proportionately with the sales price. Additional fees for endorsements may be required, and your title insurance company can assist you in determining the exact fees for your title closing costs.

Title Insurance Company Responsibilities

If a title does defect while you hold the policy, your title insurance company is obligated to follow through the legal proceedings to clear the title. They should always protect the insured pursuant of the policy and reinsure the title to the property at its appropriate value. Your title insurance company should fix the defect and obtain a release of the lien.

Get in Touch with Colony Title Today

At Colony Title, we’ll make sure you don’t run into any complications with your property’s title and help you find cost effective solutions. Specializing in real estate title insurance in Maryland and DC, our agents will perform a title search, check all past documentation, and seek to uncover any fraud or forgery associated with the title. Protect yourself from legal intervention caused by property disputes and call Colony Title today!

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410-884-1160 or visit today!



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