What Does a Title Insurance Premium Pay For?

Title insurance protects your property from claims against the title, both valid and invalid. Though it might seem unlikely that a home will have title issues, it’s actually a lot more common than you might think. “According to an American Land Title Association (ALTA) survey, one out of every four real estate transactions shows evidence of title problems.” Though it doesn’t get much press, home title insurance is actually one of the most effective methods of protecting your home.

So how much can you expect to pay for title insurance? The premium varies on a case-by-case basis, but a good rule of thumb is ½ – 1 percent of the purchase price. There are 5 main operations title companies engage in which determine the premium, ranked here from largest to smallest according to homeclosing101.com:

  1. Maintaining current title information on property local to the operation, also known as the title plant. Both this task and the second task require significant time expenditures to search for forged or falsified documents, incorrect property descriptions, recording mistakes, liens, and a number of other potential issues.
  2. Searching and examine the title to subject properties.
  3. Resolving or clearing title defects.
  4. Claim costs and legal fees.
  5. Profit. The expense ratio for title companies is much greater than other types of insurance, and can exceed 90%.


So, if you’re looking at title insurance in Baltimore, know that while it might not seem as important as home, car, or life insurance, it will keep your house in your hands in the event of any title claims.

Baltimore home title insurance

American Home Title Group has been helping Marylanders with their title needs for over 25 years. In the ever-volatile real estate industry, a company’s longevity can be attributed to the quality of its work. With more than 120 years of experience in real estate and titles, American Home Title Group is your Baltimore title company ready to provide you with the best experience possible in every capacity.

To get you started on the way to titling your home, try our free title settlement quote program here. You can fill it out for a free, no obligation title quote. It’s easy and fast so you’ll have the information you need in seconds. Contact us for more information about our title and other real estate services.

As your Baltimore title company, American Home Title Group is ready to assist you today with a variety of real estate needs you may have. Contact us now to begin your home titling process. Our phone number is 410-750-8500. To reach us via email, please send a message to info@americanhometitlegroup.com. Follow our blog and keep up with us on Google+Facebook, and Twitter.




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