are Title Premiums Determined?
Title insurance premiums are based on the amount and
type of coverage provided. Schedule of rates, forms,
and any rate modifications are required to be filed
with the state insurance commissioner who regulates
the activities of title insurers.
When is the Title Premium Paid?
Title premiums are paid once, at the closing. There
are no continuing premiums like other types of insurance.
Who Should Purchase Title Insurance?
Both buyers and lenders need title insurance. Title
companies usually issue two types of policies: an
owner's policy, which is usually limited to the purchase
price of the property, and insures the buyer for as
long as he or she owns the property, and a lender's
policy which insures that the lender's security interest
has priority over claims others may have to the property
and which is usually limited to the amount of the
loan provided by the lender.
Who Pays the Premiums for Title Policies?
Local customary practice determines who pays the title
insurance premiums. This could be a point of negotiation
between buyer and seller.
Title Insurance Premium