How to Shop for Title Insurance: Quotes, Discounts, and Verification

To shop for title insurance, use your Loan Estimate to identify which title services you are allowed to compare, call at least three licensed title companies for itemized written quotes covering both the owner’s and lender’s policies together, ask each one whether a reissue discount applies, and compare the bottom-line totals rather than any single line. Title premiums typically run 0.5% to 1% of the home’s purchase price,¹ and the Consumer Financial Protection Bureau says shopping around could save as much as $500 on title services alone.² A few hours of calls is all that stands between you and that savings.

You Have the Right to Pick the Company

A seller cannot require you to buy title insurance from a specific company as a condition of sale when the purchase involves a federally related mortgage. That rule comes from Section 9 of the Real Estate Settlement Procedures Act, and a seller who violates it owes you three times all charges paid for the title insurance.³

Lenders cannot force you to use a specific provider either, though they can set minimum financial-stability standards a title company must meet. The CFPB warns that the default providers your lender recommends may be affiliates of the lender, which gives the lender a financial reason to steer you their way rather than toward the lowest price.²

When a lender, agent, or attorney refers you to a title company they partially own, federal law calls that an affiliated business arrangement. The referral is legal only if you receive a written disclosure of the ownership relationship and estimated charges, on a separate paper, no later than the time of the referral.⁴ No one making that referral is allowed to require you to use the affiliated provider. Treat the disclosure as a prompt to compare prices, not a recommendation.

Start With Your Loan Estimate

Your Loan Estimate is the single most useful tool for shopping. Within three business days of your mortgage application, the lender must send you this form. Page 2, Section C lists the specific settlement services you are allowed to shop for, and title-related services almost always appear there.²

Along with the Loan Estimate, your lender must give you a separate written list of available providers for each shoppable service, with at least one provider per service, and must tell you that you can choose a different provider instead.⁵ Use the list as a starting point, not your only option.

There is one practical reason to lean toward companies on the list. Charges for services you shop for from the written list cannot increase at all from the Loan Estimate to the Closing Disclosure. If you choose a provider off the list, those charges carry no federal cap.⁵ You can still pick an independent provider; just lock down a firm written quote first, since the tolerance protection will not back you up.

Know What You’re Buying Before You Call

Two kinds of title insurance exist, and they protect different people. Comparing quotes without knowing the difference leads to numbers that do not line up.

Lender’s policy: Required by most mortgage lenders. It protects the lender’s interest in the property, covers the loan amount, and expires when the mortgage is paid off.
Owner’s policy: Optional. It protects your equity for as long as you or your heirs own the property, covers the full purchase price, and pays legal defense costs if a covered title problem surfaces after closing.⁶

Skipping the owner’s policy saves money upfront and leaves you personally exposed to claims from unpaid contractors, prior owners’ tax debts, or recording errors. A defect that wipes out $50,000 of your equity is the lender’s problem only up to the loan balance. Everything above that is yours to lose.

When you buy both policies through the same company at the same time, the second one costs far less. This simultaneous issue discount works because the title search and underwriting happen once. In a CFPB example, the full lender’s policy premium was $1,175, but the simultaneous issue charge for adding it alongside the owner’s policy was only $200.⁷ Always ask for a simultaneous issue quote rather than pricing each policy separately.

You may also be offered an enhanced owner’s policy, sometimes called the ALTA Homeowner’s Policy. A standard policy covers defects that existed when your deed was recorded, including forged documents in the chain of title, undisclosed heirs, and recording errors. An enhanced policy extends coverage to certain post-closing risks, such as someone forging a deed to steal the property, a neighbor’s structure encroaching on your land, or building-permit violations that force you to modify or remove existing structures. The enhanced version costs more, but the difference is usually a fraction of the total premium. If both are offered, ask for each price side by side.

What You Need Before You Request Quotes

Gather a few items from your purchase agreement and Loan Estimate so every provider is quoting the same transaction:

Property address and legal description. The title search runs against the legal description, not just the street address.
Purchase price, which sets the coverage amount for the owner’s policy.⁸
Loan amount, which sets the coverage for the lender’s policy.
Property type. Single-family homes, condominiums, and multi-unit buildings can carry different risk profiles and sometimes require different endorsements.
Who pays for what. Local custom dictates whether the buyer or seller pays for the owner’s policy; your purchase agreement or agent can confirm.

Ask every provider for a simultaneous issue quote covering both policies, and request that each line item be broken out so you can compare across companies.

Comparing the Quotes

Title insurance costs break into two buckets: the premium itself and the service fees for the administrative work. How much room you have on each depends on where you are buying.

A handful of states set title insurance premiums by regulation, meaning every company charges the same rate for the same coverage. In those states, shopping on premium is pointless because the number cannot move. Most states use a file-and-use system where insurers submit rates to the state insurance department but can set different prices from one another. In those markets, premiums for the same property can vary meaningfully. Where the premium is fixed, service fees become the only variable worth comparing. Where it is open to competition, compare both.

Beyond the premium, title companies charge for the work surrounding the policy. Common line items include:

Title search and examination, often a few hundred dollars.
Settlement or closing fee for conducting the final signing and coordinating funds.
Document preparation for deeds, affidavits, and closing paperwork.
Notary and signing fees.
Wire transfer and courier fees, which add up when multiple wires are required.

Some companies bundle all of these into one flat charge; others itemize. The CFPB advises comparing the bottom-line total rather than fixating on any single line item, because a company with a low premium may pad revenue through higher service fees.² If a company is vague about fees or insists on a lump number, keep looking.

Endorsements are a separate category worth asking about. These are optional add-ons that extend coverage for specific risks like zoning compliance, encroachments, access to public roads, and environmental liens. Individual endorsement fees are generally modest, but your lender may require several, and they add up. Ask each provider which endorsements are included in the base quote and which cost extra.

Ask About Reissue and Refinance Discounts

If the property was covered by a title insurance policy within the past several years, you may qualify for a reissue rate, which is a discounted premium reflecting the reduced risk of insuring a recently searched title. The discount typically ranges from 10% to 50% off the standard rate, shrinking as the prior policy ages. Most insurers set a cutoff around 10 years from the prior policy’s effective date, though some states use shorter or longer windows.

To qualify, you generally need a copy of the previous policy. If you do not have it, the prior closing disclosure or the original closing agent’s records can serve as proof. Providers do not always volunteer this discount, so ask directly whether a reissue rate applies and what documentation you need.

A refinance rate works on the same principle when you are refinancing an existing mortgage on the same property rather than buying. The insurer has recently searched the title, so the premium should reflect the lower risk.

Verify the Company Before You Commit

Every state requires title insurance companies and agents to be licensed through the state’s department of insurance. Before you commit, confirm the provider’s license status through your state insurance regulator, which usually maintains a searchable online database. The CFPB also recommends asking for references from recent customers and contacting them to find out how responsive the company was and how it handled problems.²

Lock In Your Choice

Once you pick a provider, notify your lender and closing agent promptly with the company’s name, contact information, and the written quote. The lender needs this to prepare your Closing Disclosure, which must reach you at least three business days before closing.⁹

When the Closing Disclosure arrives, compare every title-related line against the quote you accepted. Check that the correct company name appears, that the premium matches, and that each service fee lines up. Certain changes trigger another three-business-day review period before closing can proceed, but only if the change affects key terms like the interest rate or loan product.¹⁰ For fee discrepancies that do not trigger a new waiting period, raise them with your lender and title company immediately so they can be corrected before you sign.

1
U.S. Department of the Treasury. Exploring Title Insurance, Consumer Protection, and Opportunities for Potential Reforms
2
Consumer Financial Protection Bureau. Shop for Title Insurance and Other Closing Services
3
Office of the Law Revision Counsel. 12 USC 2608 – Title Companies; Liability of Seller
4
Consumer Financial Protection Bureau. 12 CFR 1024.15 – Affiliated Business Arrangements
5
Consumer Financial Protection Bureau. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions
6
Consumer Financial Protection Bureau. What Is Owner’s Title Insurance?
7
Consumer Financial Protection Bureau. Factsheet: TRID Title Insurance Disclosures
8
National Association of Insurance Commissioners. Consumer Guide to Title Insurance
9
Consumer Financial Protection Bureau. What Should I Do If I Do Not Get a Closing Disclosure Three Days Before My Mortgage Closing?
10
Consumer Financial Protection Bureau. Know Before You Owe: You’ll Get 3 Days to Review Your Mortgage Closing Documents