How much is title insurance?

All states have different requirements about how much a title insurer can charge for its policy premiums, resulting in wide variations in title insurance costs according to the state and its real estate market conditions. Generally, title insurance costs from 2% to 4% of the total real estate purchase price. In some states, title insurers can add an endorsement—or rider—to their title insurance policy.

This kind of title insurance endorsement will add a premium for special protection if a lender requires it. For example, in New York State, this type of title insurance endorsement can add a premium of up to 1% of the title insured value.

To make the title insurance premium more affordable, title insurers often allow title owners to reduce their title insurance premiums by providing proof of newer title protection endorsements on existing policies.

• Real estate buyers and sellers should carefully consider title insurance when entering into real estate purchases, be sure to research title insurance and title companies, primarily when the title does not originate from a normal state.

• Real estate buyers can save money on title insurance premiums by having a title insurer pre-clear title before purchase or during escrow. It is essential for real estate sellers to understand that title insurance protects their interests.