Jan 2012

Pennsylvania Title Insurance – Rate Explanations

By Marc Shaw

Pennsylvania Title Insurance Premium

As elaborated on in past blog posts Pennsylvania Title Insurance is state mandated by the Title Insurance Rating Bureau of Pennsylvania (TIRBOP).  Pennsylvania title insurance is currently structured into 4 filed rates. The title insurance rate is determined by the amount of insurance requested, the type of transaction, and the number of years since the last PA title insurance policy was issued.  That said, there are talks about the title insurance rates being simplified in the near future.  Stand by…

In a Purchase Transaction a Pennsylvania home buyer will pay either the Basic or Reissue rate.  The coverage amount is determined by the greater of the purchase price or loan amount.

When a Pennsylvania home owner initiates a Refinance Transaction the borrower is eligible for any of the 4 potential PA title insurance rates.

Last Transaction                          Applicable Rate

More then 10 years ago:                 Basic Rate Coverage applicable

Less then 10 years ago:                 Reissue Rate Coverage applicable

(10% Discount off of the PA Basic Rate)

Between 2-4 years ago:                   Refinance Rate Coverage applicable

(30% off of the PA Reissue Rate)

LESS then 2 years ago:                   Larger Refinance Rate applicable

(40% off of the PA Reissue Rate)

**The Pennsylvania Title Insurance Rate Manual specifically sets forth certain tiered rates and charges for other various transactions.  Such examples are New Construction, Leasehold title insurance, extension or modification of a insured loan and permanent loan after construction financing.  Moreover the rate may not always be based on the loan amount or purchase price, for instance with a reverse mortgage transaction the lender/creditor would advise the PA Title Company of the amount of coverage that was required.

PA Endorsements

You or your lender may request Endorsements to the title insurance policy.  Lenders typically request three standard endorsements, but depending on the type of loan transaction or property, the bank may ask for additional coverage with further endorsements. All endorsements and their rates are again state regulated so do not differ from one PA Title company to the next one. The standard endorsements are set at $50.00.

Closing Service Letter

Practically all Banks require Closing Service Letter and the charge is $75.

Additional Information for Home Purchasers and Borrowers!

It is important to note that with Pennsylvania Title Insurance a lenders policy is provided at no charge so long as a Owners policy is being issued at settlement.  That said, pursuant to the new 2010 regulations many lenders request the HUD to reflect the amount of the loan coverage on the lenders title insurance line.  It is also vital to understand when either purchasing or refinancing a home that although the actual PA Title Insurance is state regulated and that all PA Title Companies must charge the same amount, many PA Title Companies charge excessive ancillary fees.  PA Title Insurance is all inclusive, meaning that the title insurance charge should cover all other miscellaneous fees.  No title search, abstract fee, underwriting, examination or document preparation fee should be charged.  In fact when choosing a PA Title Company a home buyer or borrower should request a quote to make sure they understand all of the fees they are being charged before they move forward.

To get a quote from our Pennsylvania Title Insurance company click here and note that we charge the lowest fees permitted by law!

Also ask about Enhanced coverage which is available to owner-occupants for an additional 10% of the applicable premium.  For more information on what Enhanced Coverage is and how it can be important to you please contact us.