Estimateur d'Assurance Titre — Formule
## Title Insurance Explained
Title insurance protects property buyers and lenders against losses arising from defects in the title, such as liens, encumbrances, or ownership disputes.
### Two Types of Policies
- **Owner policy**: Protects the buyer for the full purchase price, lasts as long as you or your heirs own the property
- **Lender policy**: Required by most mortgage lenders, protects only the lender for the loan amount, and decreases as the loan is paid down
### Simultaneous Issue Discount
When both policies are purchased at the same time, most title companies offer a significant discount on the lender policy (30-50% off). This is because the title search only needs to be performed once.
### Rate Variations
- Rates are regulated in some states and negotiable in others
- Typical rates range from $3.50 to $8.00 per $1,000 of coverage
- Some states use flat-rate schedules while others allow market pricing
Title insurance protects property buyers and lenders against losses arising from defects in the title, such as liens, encumbrances, or ownership disputes.
### Two Types of Policies
- **Owner policy**: Protects the buyer for the full purchase price, lasts as long as you or your heirs own the property
- **Lender policy**: Required by most mortgage lenders, protects only the lender for the loan amount, and decreases as the loan is paid down
### Simultaneous Issue Discount
When both policies are purchased at the same time, most title companies offer a significant discount on the lender policy (30-50% off). This is because the title search only needs to be performed once.
### Rate Variations
- Rates are regulated in some states and negotiable in others
- Typical rates range from $3.50 to $8.00 per $1,000 of coverage
- Some states use flat-rate schedules while others allow market pricing
Exemple Résolu
$400,000 purchase with $320,000 loan, owner rate $5.50 per $1,000, lender rate $3.50 per $1,000, and 40% simultaneous issue discount on the lender policy.
- Owner policy: $400,000 / 1,000 x $5.50 = $2,200
- Lender policy (full): $320,000 / 1,000 x $3.50 = $1,120
- Simultaneous discount: $1,120 x 40% = $448
- Lender policy (discounted): $1,120 - $448 = $672
- Total title insurance: $2,200 + $672 = $2,872