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 policy and 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 Pennsylvania?

Closing costs in Pennsylvania are all inclusive. The title insurance fee across all PA counties includes title premium, examination and settlement or closing fees, and every other charge.

A property worth $200,000 will cost around $1,600 on sale rate and around $1,388 on sale rate.

Non sale rates are applicable for refinancing while the sale rate is applied to fresh mortgage loans. 

The percentage rate decreases as the sale price of the property increases. A $500,000 property will cost you $3,305 on sale rate and $2,835. 

Enhanced vs. Non Enhanced Rates 

These prices are applicable for policies that are not enhanced. Pennsylvania has something called enhanced versus non enhanced policies. The enhanced policies cost an additional 10% on top of non enhanced costs. 

That means a 200k property will cost $1,754 at the same rate and $1,521 and non sale rate. 

Note, that these costs do not include the multiple endorsements that could further increase the total price. 

How to calculate title insurance for Pennsylvania?

Title insurance rates for Pennsylvania are given below:

Property Price Sale Rate Non Sale Rate
$0 - $30,000 $569 $512

Each additional $1,000 (or fraction thereof), add

$30,001- $45,000 $7.41 $5.98
$45,001 - $100,000 $6.27 $5.41
$100,001 - $500,000 $5.70 $4.84
$500,001 - $1,000,000 $4.56 $4.27
$1,000,001 - $2,000,000 $3.42 $3.13
$2,000,001 - $7,000,000 $2.28 $1.99
$7,000,000 - $30,000,000 $1.71 $1.71
$30,000,000 and above $1.42 $1.42

Using the rates in the table let’s calculate the title insurance cost for a $200,000 property.

 

 

Who Pays for Title Insurance in Pennsylvania?

The buyer usually pays title insurance policy in Pennsylvania, and the buyer has the legal right to select the title company. Most home buyers take the real estate agent's recommendations on who to use.