Free Title Insurance Calculator

Estimate the cost of owner and lender title insurance policies based on the property value and loan amount.

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Total Title Insurance Cost

$2,000

Owner Policy Premium$1,400
Lender Policy Premium (after discount)$600
Simultaneous Issue Discount$200
Title Cost as % of Property Value0.50%

Total Title Insurance Cost vs Owner Policy Rate (per $1,000)

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.

    Example Calculation

    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. 01Owner policy: $400,000 / 1,000 x $3.50 = $1,400
    2. 02Lender policy (full): $320,000 / 1,000 x $2.50 = $800
    3. 03Simultaneous discount: $800 x 25% = $200
    4. 04Lender policy (discounted): $800 - $200 = $600
    5. 05Total title insurance: $1,400 + $600 = $2,000
    6. 06Cost as % of property: $2,000 / $400,000 = 0.50%

    Frequently Asked Questions

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