Tips On Buying Title Insurance

Here is another article from the LA TIMES which has some great info on purchasing Title Insurance. I found it interesting that we only started discussing this and seems everyone was like me and did not feel there was much we as individual purchasers could do. But apparently there IS! A new website ( at least in California) allow individuals to compare companies and rates. Some vary as much as a whopping $512 according to this article:

If you've ever purchased title insurance, chances are you went with the company recommended by your real estate agent. But by shopping around, you might have been able to save yourself hundreds of dollars.

Don't be surprised, however, if you feel pressured to go with a specific title company. State authorities have repeatedly sanctioned title insurers for giving illegal gifts and kickbacks to real estate agents, lenders and builders to steer business their way.

You are the one paying for title insurance, and federal law guarantees your right to pick your own provider. Here are some tips to help you get a good deal.

* Compare prices online: Last October, the California Land Title Assn. launched TitleWizard, www.clta.title wizard.com, which allows consumers to compare rates from 83 title companies. A recent search showed a $512 difference between the highest and lowest prices for an owner's policy on a $500,000 home, plus a $491 difference on a policy to cover refinancing a $400,000 loan.

The rates are listed by default in less-than-useful random order, but you can rank them from lowest to highest by clicking on the "title policy rate" column heading.

The article also warns that many times you think your going with a "different" company when in fact the company may be the same simply DBA another name:

* Know the companies: Because of interconnected ownership and underwriting affiliations, there's less choice in California title insurance than it might appear.

A consumer who randomly calls Ticor Title, Chicago Title and Security Union Title might be suspicious to find they all offer the same rate. That's because they're all owned by Fidelity National Financial Inc., the nation's second-largest title insurance firm.

Among other affiliations, LandAmerica Financial Group Inc. owns Lawyers Title, Gateway Title, Commonwealth Land Title, United Title and Southland Title; First American Corp. owns United General Title Co. and part of CornerStone Title; and Orange Coast Title Co. owns California Title.

There are dozens of smaller, independent title companies in California, but while they may do the title search themselves, they will ultimately have the policy issued -- or "underwritten" -- by one of the major firms. Some independent firms are affiliated exclusively with one underwriter; some deal with multiple companies.

So, when shopping, be sure you're comparing different companies.

* Be sure you're comparing the same coverage: Banks will sometimes ask for extra coverage -- known as endorsements -- on the lender's policy. When comparing costs, be sure to ask each insurer for the same coverage.

So while reading this article the reader gets the idea this is one of the areas of insurance where they may have the "least" amount of ability to control, there are some basic things one can do to try and offset this homeowners expense.