Simply put, title insurance rates are set by the State of Maryland Insurance Commission. Rates are standard, and so they do not change, regardless of the title company or title insurance underwriter that you use. There is no cost savings to be gained by shopping around for rates.
So how do you know what to expect on your settlement sheet?
Rates are calculated on the basis of the purchase price of the home. The higher the purchase price, the more title insurance will cost. Without going into the technicalities of calculating rates, you can use our simple calculator, found here, to figure out what your rate will be at settlement.
Specifically, many purchases are subject to a standard rate for purchases between $40,000 and $250,000. Below $40,000, a minimum charge of $140 applies. For purchases above $250,000, there is a small savings per $1,000 of coverage, since you’ve already paid insurance on the first $250,000.
There is also the cost of the lender’s title insurance policy. Most purchases are made with a loan, and lenders always require title insurance. When both an owner’s title policy and a lender’s policy are purchased, the second policy is available at a small cost (usually under $100) – which makes the owner’s policy a good value.
What if you want more protection for your home’s title? In that case, for an increased rate, there is enhanced title insurance, also known as “homeowners title insurance” available when you occupy your home. Although these policies cost more, they also extend many benefits that any homeowner would benefit from. These rates are also consistent across title insurers in the State of Maryland.
