The Cost of Title Insurance

You may know how traditional insurance models work, but the title insurance process differs greatly from property and casualty insurance, like health or auto. This is because:

  1. Title insurance helps eliminate past risk, rather than assessing the probability of future risk
  2. Title insurance claims are less common than other types of insurance claims, due to the fact that risk mitigation is performed as part of the title insurance process

Title insurance providers search public records and court documents to assess and remove (if possible) any “clouds” or title issues on a property. A large portion of your policy’s cost (90 percent according to the American Land Title Association) actually goes toward the search and examination process. An owner’s title insurance policy is a one-time purchase, and remains active as long as you hold interest in the property. In most states, the cost of an owner’s policy is based on the home’s price, while a lender’s policy is based on the amount of the loan.

Get more information by calling a First American Title office in your area, or use First American’s Title Fee Calculator, located at

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