I am buying my first home and wondered if it’s true (I’ve read several articles saying it is, but my attorney and realtor both never heard of it):
Shopping around for a homeowners title insurance policy vs. just going with whomever the mortgage company/lendor selects at closing.
One article:
http://personalinsure.about.com/od/homeowners/a/aa071105a_2.htm
I was told by my mortgage broker that he’s never heard of it either and by his account, it is generally a standard fee across the industry. Am I the only intelligent one of this bunch, or am I reading all the wrong websites? 
I plan on calling my property insurance company and see if they also offer Homeowners Title Insurance policies and how much they charge to compare.
ernesto_tig 8:27 am on August 26, 2010
Address the "tips":
1."The choice of which title insurance company to select is yours, so contact more than one title insurance company to compare costs. " – This is true, however in most states, the cost of the insurance is set, the only thing to negotiate is prep-fees, searcher fees and other extras added by the title company.
2."If the property you are purchasing has been re-sold in the last 5 years check to see if the title insurance company will offer you a discounted rate. " – Almost true – if your doing a refinancing within 5 years, there is a reissue rate for the owners policy. Does not apply for new purchases.
3."Are you a first-time home buyer? Then you may be eligible for an additional discount. "- Never heard of this.
4."See if the property insurance company you are selecting offers title insurance in order to get a better rate." – Never heard of this, this is really apples and oranges, P&C is a different animal and unrelated to title insurance. Besides, the title underwriting companies are different entities than the P&C insurance companies – why would you get a discount? This would violate most states insurance laws concerning discounting.
5."As the property buyer, your title insurance should be for the full purchase price of the property." – True, you could try to get by for the financed amount, but may as well pay the full thing.
mbrcatz17 8:27 am on August 26, 2010
The rate is set as a percentage of the purchase price of the house. It varies, but by STATE or COUNTY, not by broker. So, for instance, if you buy your house in Allegheny County, PA, you are GOING to pay 3% of the purchase price for title insurance, no matter whom you buy it from.
That’s why no one bothers to shop around. MOST P&C agents don’t offer title insurance, it’s pretty specialized.
john_crazy_martin 8:27 am on August 26, 2010
For details on title insurance please visit http://insurance.sjdinfotech.com