State regulations can raise the cost of title insurance policies. In some states, the premium of a title insurance policy includes only the cost of the actual insurance portion; other title-related tasks like searches are done by attorneys or separate companies. In other states, the title insurance company handling the policy is also responsible for doing the title search and providing other services, and those costs are built into the policy.
Because insurance is a state-regulated industry, the premiums charged by individual companies are examined and regulated by state officials, which can also cause variation in the premiums. However, some states, including Massachusetts, Illinois, West Virginia, Hawaii, Indiana, Oklahoma, Alabama, Georgia and Washington, D.C., do not regulate the premiums charged by title insurance companies. This means that homebuyers in those states could get a better rate by shopping around. Other states have different rates for different types of policies (for example, if the policy is covering an original mortgage or a refinance).
Consumers should make sure that any information they have concerning title insurance is applicable to the state in which they are making a real estate purchase. The state’s Insurance Department is one place to get state-specific information about title insurance policies and the regulations that pertain to them.
Because insurance is a state-regulated industry, the premiums charged by individual companies are examined and regulated by state officials, which can also cause variation in the premiums. However, some states, including Massachusetts, Illinois, West Virginia, Hawaii, Indiana, Oklahoma, Alabama, Georgia and Washington, D.C., do not regulate the premiums charged by title insurance companies. This means that homebuyers in those states could get a better rate by shopping around. Other states have different rates for different types of policies (for example, if the policy is covering an original mortgage or a refinance).