Title Insurance Premiums — One of the great mysteries for buyers, Realtors®, and loan officers, is how the title insurance premium is calculated. For purchases, the sales price determines the cost of the owners or homeowners title policy regardless of the loan amount. The lender’s policy is included in that price for an additional $50 simultaneous issue fee. For refinances, the amount of the loan determines the cost of the lenders policy. If a previous owner’s policy for the property in question is provided, Reliant Title will issue the new policy based upon a reissue rate. This provides your client with considerable savings at closing.
At Reliant Title, each client is provided with an itemization of insurance rates as filed by Stewart Title Guaranty with the State Corporation Commission, Bureau of Insurance. These rates are competitive, and uniform throughout the Commonwealth of Virginia for all Stewart Title agents.
| Mortgagee Title Insurance: | $2.90 per $1,000.00 up to $100,000.00 |
| (Lenders Policy) | $2.40 per $1,000.00 for amounts above $100,000.00 |
| $1.75 per $1,000.00 for amounts above $500,000.00 |
| ALTA Homeowners Title Insurance: | $4.90 per $1,000.00 up to $100,000.00 |
| $4.40 per $1,000.00 for amounts above $100,000.00 | |
| $3.75 per $1,000.00 for amounts above $500,000.00 | |
| (Mortgagee Title Insurance for an additional $50) |
Please note: “…Title insurance risk rates shall not include charges for abstracting, record searching, certificates regarding the record title, escrow services, closing services, and other related services that may be offered or furnished, or the cost and expenses of examinations of titles.”
Buyers/ Realtors® beware: A discounted settlement fee doesn’t always equate to a less expensive closing. In many cases other companies include some of their service fees (search/ record/ binder/ update) in the line 1108 title insurance charge. One way to determine if additional fees are added into the title insurance premium is to look at the line immediately above/ below line 1108. On these lines there is a statement “(includes above item numbers: )”, if there are numbers entered such as 1102/ 1103/1104, fees have been added into the title insurance premium. Additionally, the individual cost of the lenders and owners policies should be shown on lines 1109 and 1110 respectively after the coverage amounts. Their sum should equal 1108.
Please call us at 493-7600 if you have any questions regarding title insurance rates.
