When you are buying a house, one of the many things you need to consider is the cost of title insurance. This is a type of insurance that protects you from any legal issues that may arise with the title to the property. Title insurance rates vary depending on a number of factors, including the state you live in, the size of the property, and the company you choose.

If you are looking to get the best deal on title insurance, there are a few things you can do. First, whether you are in a Filed Rate or Promulgated Rate state, shop around and compare rates from different companies.

What is the difference between a filed rate state and a promulgated rate state?

Basically, the state you live in is either filed or promulgated. In filed rate states, the underwriter determines the cost of title insurance, whereas, in a promulgated rate state like Florida or Texas, title insurance is determined by the state.

How do I calculate title insurance rates and fees?

Many title companies and real estate law firms offer a net sheet calculator to their real estate agents and title representatives to calculate title insurance rates and estimate real estate closing costs.

How do I save money?

It is always ok to ask about discounts. Many companies offer credits for say being a veteran, working with a preferred title company, or having an existing title insurance policy on a refinance, for example. Credits might not necessarily be available on the title policy itself as sometimes these are determined by the state, but possibly on other fees that the title agent charges for their services.

Title insurance is often a necessary part of buying a home, but it doesn’t have to be expensive. A few hundred dollars saved here and there always helps when you are making the biggest purchase of your life.

In conclusion

Although title insurance rates can differ slightly between states, underwriters, and even between title and escrow companies, title agents try to stay pretty competitive within their local market. Do your research but as long as you work with a reputable company with a great web presence, lots of positive reviews, and are transparent with their title insurance rates you should be in pretty good shape.

Looking for a branded closing cost calculator for your title and escrow company or law firm? Check out Net Sheet Calculator. Provide your real estate agents with seller net sheets, buyer finance, buyer cash, and refinance closing costs all in one easy-to-use tool.