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TITLE INSURANCE PREMIUMS

Owner Title Insurance

When you purchase property, it is equally important for you to insure the title of the property, as it is to insure the property against fire, theft and other hazards.  Unlike your fire and hazard insurance, you only need to pay the premium for your owner’s title insurance policy once.

To understand more about what title insurance covers, watch our brief video.

Generally, Pennsylvania law requires all title insurance agents to charge the same premium for the same amount and type of insurance.  However, rates for an owner’s policy of title insurance may vary based upon a number of factors such as:

  • The amount of coverage—usually the amount of the purchase price of the property.
  • The types of coverage desired—generally standard, enhanced or risks insured by special endorsements.
  • When the property was last insured with title insurance—discounts known as the "reissue rate" apply to properties insured within the past 10 years.
  • Identification of the property as part of a subdivision or condominium where the "operative builder" insured the ground within the last 10 years and built houses.

Lenders Title Insurance

If you are borrowing money to buy your property and the lender requires a mortgage to secure the loan, generally the lender will require that you pay for title insurance to protect its mortgage.  The good news is that when you first purchase your property, you only pay one premium for both the owner’s and lender’s title insurance policies.

You may also be required to pay for title insurance for your lender if you refinance your mortgage.

Rates for a lender’s policy of title insurance are based upon several factors:

  • The amount of coverage—which will be the amount of the mortgage.
  • The types of coverage desired - generally standard and certain additional coverage offered by special endorsements.
  • When the property was last insured with title insurance – discounts known as the “reissue rate” apply for properties insured within the past 10 years and additional discounts apply if the property was insured within the last two to four years.

 

Guardian Land Transfer, LLC
 3277 W. Ridge Pike, Suite B-204  Pottstown, PA 19464
(610) 495-0616
guardianland@comcast.net