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. Lender’s and Owner’s. 

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 Ohio?

Title insurance costs are quite discreet in Ohio. A total of 5 slabs are defined for owner’s policy. Ohio requires you to pay a minimum $175 for owner’s policy when closing a home. 

One of the distinctive things about title insurance in Ohio is a well laid out slab for lender’s policy as well unlike other states where it is mostly a flat rate across counties. 

Overall a $200,000 home in Ohio will cost around $1,087 and $763 for owner’s and lender’s policy respectively, totalling up to $1,850.

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 for Ohio?

As mentioned, both lender and owner’s policies are segregated in 5 different slabs. These cost brackets are given below:

Cost of Owner’s Policy

Property Value Rate
Up to $150,000 of liability written $5.75
Over $150,000 and up to $250,000 $4.50
Over $250,000 and up to $500,000  $3.50
Over $500,000 and up to $10,000,000 $2.75
Over $10,000,000 $2.25 

Minimum Premium $125.00

 

Cost of Lender’s Policy

Property Value Rate
Up to $150,000 of liability written $4.00
Over $150,000 and up to $250,000 $3.25
Over $250,000 and up to $500,000 $2.50
Over $500,000 and up to $10,000,000 $2.25
Over $10,000,000 $2.00

Minimum Premium $125.00

To give a perspective, these 3 use cases give you a complete idea on what to expect when closing in Ohio. 

  • For a purchase price of a $250,000 property in Ohio with 20% down payment ($70,000), the cost of title insurance policy and lender's policy are $1,312 and $925 respectively. 
  • For a purchase price of a $250,000 property in Ohio bought with full cash, the cost of the title insurance owner's policy is $1,312. 
  • For a purchase price of a $500,000 property in Ohio with 20% down payment ($100,000), the cost of title insurance owner's policy and lender's policy are $2,187 and $1550 respectively.
  • For a purchase price of a $500,000 property in Ohio bought with full cash, the cost of the title insurance owner's policy is $2,187. 
  • For a purchase price of a $1,000,000 property in Ohio with 20% down payment ($200,000), the cost of title insurance owner's policy and lender's policy are $3,562 and $2,675 respectively. 
  • For a purchase price of a $1,000,000 property in Ohio bought with full cash, the cost of the title insurance owner's policy is $2,675. 

Who Pays for Title Insurance in Ohio?

The cost for owner’s policy is split between the buyer and the seller in many counties in Ohio. On the other hand, the cost of the lender's policy is paid by the buyer most of the time.