Clarifying a common misconception: title insurance premiums

We’ve said it before, and we want to make it absolutely clear because we continue to get questions about title insurance premiums. Title insurance premiums are NOT created equal.

While you no doubt have heard that title insurance underwriters are legally required to file their rates with the local insurance commission, underwriters do not file identical rate schedules.

It is true that title companies who are agents of the same underwriter must charge the same title insurance premium. But sometimes title companies become agents of multiple underwriters, using one title insurance underwriter for one jurisdiction and a second underwriter in another jurisdiction, etc.

Federal Title is a prime example of this. We use different underwriters depending on the jurisdiction, allowing us to pass extended savings on to our homebuyers.

We receive calls fairly regularly from confused agents, lenders and consumers who are wondering why our Quick Quote reflects a title insurance premium on a Maryland property that is hundreds of dollars less than the other quotes. It’s not because our quote is incorrect, it’s because our underwriter charges a lower premium.

That title insurance premiums are created equal is a common misconception we wish to clarify for our agents and lenders as well as consumers, because we believe they are our best ally when it comes to looking out for the best interest of our homebuyers.