What is Title Insurance?

Title insurance protects buyers and lenders from financial liabilities arising due to faulty title or hidden liens associated with the property. There are two types of title insurance policies. These are the Lender’s policy and the Owner’s policy.

Lenders approve a loan until they buy the lender’s title insurance or lender’s policy. This way the lenders are safeguarded against defaults arising due to the title. On the other hand, the owner’s policy protects the buyer in case they are unaware of any title defects or liens.

How much does Title Insurance Cost in New York?

New York is divided into 2 zones with their own cost slabs. Prices apply based on the zone, the property is located. Overall, a $200,000 home will cost around $1,063 in the owner’s title policy while the lender’s policy would cost $887. 

Loan policy charges are significant in New York that shoots up the overall cost of title insurance. 

The average sale price for homes in New York is more than $600k which is probably the reason we see more elaborate rate slabs for both zone 1 and 2.  

Please note, these costs are excluding any endorsement or lien on the property. Any endorsement will add up to the cost. 

How to Calculate Title Insurance Cost for New York?

New York title insurance costs are 9 cost brackets or slabs that you should take into account to calculate the total title insurance cost for your property. 

For Zone 1 the costs are:

Amount  Owner’s Policy Loan Policy
$35,000 or less $338 $284
Each additional $1,000 (or fraction thereof), add
$35,001- $50,000 $7.52 $6.28
$50,001 - $100,000 $4.69 $3.90
$100,001 - $500,000 $3.78 $3.14
$500,001 - $1,000,000 $3.38 $2.81
$1,000,001 - $5,000,000 $3.09 $2.57
$5,000,001 - $10,000,000 $2.81 $2.35
$10,000,001 - $15,000,000 $2.62 $2.19
$15,000,001 and up $2.36 $1.97

 

Zone 1 counties include:

Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, St. Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, Steuben, Tioga, Tompkins, Warren, Washington, Wayne, Wyoming, and Yates.

Zone 2 costs are as follows:

Amount  Owner’s Policy Loan Policy
$35,000 or less $382 $327
Each additional $1,000 (or fraction thereof), add
$35,001- $50,000 $6.34 $5.27
$50,001 - $100,000 $5.16 $4.31
$100,001 - $500,000 $4.14 $3.46
$500,001 - $1,000,000 $3.78 $3.14
$1,000,001 - $5,000,000 $3.48 $2.90
$5,000,001 - $10,000,000 $3.09 $2.57
$10,000,001 - $15,000,000 $2.92 $2.42
$15,000,001 and up $2.62 $2.19

 

Zone 2 counties include:

Albany, Bronx, Columbia, Dutchess, Greene, Kings, Nassau, New York, Orange, Putnam, Queens, Rensselaer, Richmond, Rockland, Suffolk, Sullivan, Ulster, and Westchester. 

These 3 use cases give you a complete idea of what to expect when closing in New York. 

  • For a purchase price of a $650,000 property in New York (Zone 2) with a 20% down payment ($70,000), the cost of title insurance policy and lender's policy are $2,958 and $2,477 respectively. 
  • For a purchase price of a $650,000 property in New York bought with full cash, the cost of the title insurance owner's policy is $2,704 
  • For a purchase price of a $1,000,000 property in New York with a 20% down payment ($200,000), the cost of title insurance owner's policy and lender's policy are $4,281 and $3,575 respectively. 
  • For a purchase price of a $1,000,000 property in New York bought with full cash, the cost of the title insurance owner's policy is $4,281.

Who Pays for Title Insurance in New York?

The buyer is responsible for paying both the lender's as well as the owner's policy. However, negotiations between the parties may lead the seller to pay for the insurance.