How to Negotiate the Best Rate for Title Insurance

Have all information ready

In many states, title insurance policy rates are set by state regulators and cannot be changed. However, there are a few ways to save money on title insurance. The first is to shop around – if the state in which the property is located does not set standard title insurance rates, a better deal may be found than the one offered by a bank or attorney. Massachusetts, Illinois, West Virginia, Hawaii, Indiana, Oklahoma, Alabama, Georgia and Washington, D.C. are some of the places that do not regulate title insurance rates, and where it may be beneficial to get quotes from more than one title insurance company.

Understand the product and any terms

Secondly, in some places, the seller can pay for the cost of title insurance as a way to sweeten the deal for the buyer in a buyer’s market. This could cut the purchaser’s closing costs substantially.

Get quotes from more than one company

If a property was recently previously insured – which may happen when a homeowner is conducting a refinance, or with a home that has changed hands several times – the title insurance company may be willing to give a lower rate, called a “reissue” rate, if the title search was done within a specified period of years.

Hidden fees and costs

If a consumer wants to get the best rate on a title insurance policy, he or she should also make sure to understand the terminology involved in the product, and look at documents carefully to understand any service charges or fees that may be associated with the policy. Different policies can incorporate varying services such as charges for title searches in addition to the cost of the policy. Having all pertinent information available about the property and the loan being used to secure it may also help a homebuyer negotiate a good rate.

Get referrals

Referrals can be a good source of information for anyone seeking insurance. Attorneys and banks involved in the real estate transaction may provide referrals, but they can also get fees or commissions on title insurance products, so a consumer may want to look elsewhere as well. Asking friends and family members who have recently purchased a home and may have shopped for title insurance can be one way to get referrals from happy customers.