The cost of the title insurance policy depends on the sales price of a property such as a home or land. In many states, there is a set standard that can be charged at each price point. This is called a Promulgated Rate.
Which states have promulgated rates?
For instance, the States of Florida and Texas are both “Promulgated Rate” states, thus it has a set standard fee that can be charged for title insurance policies that fluctuates based on the purchase price.
States that have different title insurance rates determined by the underwriter are called Filed Rate states.
A list of promulgated rate states:
- Florida
- Texas
- New Mexico
In all the states above, the promulgated rates are set by the State’s Insurance Department.
How do I calculate a promulgated rate for Florida?
Promulgated rate states usually have a table or a formula-driven calculation to determine the price you would pay for title insurance. For example, below you’ll find Florida’s rate chart.
Sale Price : Rate per $1,000
* $0 – $100,000 : $5.75
* $100,000 – $1,000,000 : $5.00
* $1,000,000 – $5,000,000 : $2.50
* $5,000,000 – $10,000,000 : $2.25
* Over $10,000,000 : $2.00
So if you paid $100,000 for a house or a piece of property you’d pay $575.00 for your Owner’s Title Insurance premium.
That fee, however, shouldn’t be mistaken for “Closing Costs”. In fact, it isn’t the only fee you’d likely pay if you are buying or selling a house.
This rate is simply one part of your total “Closing Costs”, as most title companies and real estate attorneys will charge additional fees for different parts of their services.
When working with an Attorney, for instance, you may notice an Attorney Fee line item on your Net Sheet.
So if you see additional fees on your net sheet calculator or closing disclosure this is perfectly normal.
Looking for a title insurance rate calculator for your title agency or real estate law firm, watch a quick demo of our Net Sheet Calculator to see if it is right for your market.