Calculadora de Seguro de Título — Formula

Title Insurance Explained

Title insurance protects against financial loss from defects in title to real property, such as liens, encumbrances, or ownership disputes.

Two Types of Policies

  • Owner policy: Protects the buyer for the full purchase price. One-time premium paid at closing, coverage lasts as long as you own the property.
  • Lender policy: Required by the mortgage lender, covers the loan amount. Protects the lender until the loan is paid off.

    • Simultaneous Issue Discount

    When both policies are issued at the same time, the lender policy is significantly discounted (typically 25-40% off) because the title search has already been done.

    Rate Factors

    Title insurance rates vary by state, some of which regulate rates. Rates generally range from $2 to $6 per $1,000 of coverage.

    Exemplo Resolvido

    A $400,000 property with a $320,000 loan. Owner rate $3.50 per $1,000, lender rate $2.50 per $1,000, 25% simultaneous issue discount.

    1. Owner policy: $400,000 / 1,000 x $3.50 = $1,400
    2. Lender policy (full): $320,000 / 1,000 x $2.50 = $800
    3. Simultaneous discount: $800 x 25% = $200
    4. Lender policy (discounted): $800 - $200 = $600
    5. Total title insurance: $1,400 + $600 = $2,000
    6. Cost as % of property: $2,000 / $400,000 = 0.50%