Another Way Federal Title Saves Homebuyers Money

Title insurance premiums in the DC area have increased substantially over the past decade such that an owner’s title insurance policy for a $1 million District of Columbia property can cost you as much as $5,000.00.  To reduce this pricey closing cost item, Federal Title has partnered with underwriters who make nearly all properties in the District of Columbia and Maryland eligible for a title insurance reissue rate.  Just an example of another way Federal Title saves homebuyers money.

What is the title insurance reissue rate?

When a property’s title has been previously insured by a reputable title insurance company, the homebuyer to be insured is entitled to a “reissue rate,” or 40% reduction on the current published rates, up to the face amount of the previous policy.

Until recently, the reissue rate was restricted only to properties which had been previously insured within the last 10 years.  Now, there is no longer a time restriction which means that nearly all properties we close in the District of Columbia and Maryland are eligible for a reduction in the owner’s title insurance premium.

As a result of this change, Federal Title is able to provide most of the homebuyers we serve with a substantially reduced owner’s title insurance premium.  For example, on a recent District of Columbia transaction we closed earlier this week, the property had previously been insured in 2007 for $785,000 and, as a result, Federal Title was able to provide the reissue rate and the homebuyers were able to reduce the cost of their owner’s title insurance premium by $1,911.60.

As always, we stress the importance of shopping around when it comes time for selecting your title company.

Find out why other title companies don’t want to give you a reissue rate here.

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