insurance cost

The GFE form includes an estimate for title insurance, but you can shop around. Will the savings be worth your time? It depends on where you live. Some states set or regulate title insurance premiums. In other states the charges vary.
In Bankrate’s survey, the average title insurance premium nationwide is $1,653. North Carolina is one of the cheapest places to buy title insurance with an average cost of $993. In comparison, the average title insurance premium in the New York, for the same home value and mortgage amount, is $2,811.
Joseph Eaton, co-author of the 2007 book “The American Title Insurance Industry: How a Cartel Fleeces the American Consumer,” has studied the title industry for more than a decade. He says that if consumers were able to shop for title insurance outside of their states and the rates weren’t fixed in some states, borrowers wouldn’t have to pay as much.
“I’ve asked the question to insurance commissions in some states on why their (title) costs are so much higher than in neighboring states, and the answer is, ‘We don’t compare states,’” he says.
Even if you live in a state where fees and premiums for title services are regulated, it never hurts to do your homework and compare to make sure you are being charged the standard rate.
“We encourage contacting several title companies and asking questions,” says Jeremy Yohe, spokesman for the American Land Title Association. “Cost shouldn’t be the only consideration.”