To many home buyers, title insurance rates are a “black box” in that most don’t fully understand how title insurance rates are set.
In this post, we’ll try to shed some light on how title insurance rates are calculated, and how it differs between states.
Three primary methods to calculating title insurance rates
There are three different ways title insurance rates are calculated. This is often determined by state regulation (or lack thereof).
- Method 1: Filed Rate
- Method 2: Not Filed Rate (This Post)
- Method 3: Promulgated rate
In this post, we’ll discuss the 2nd method – Not Filed rates and which states use this method.
What does it mean when title insurance rates are “Not Filed”?
Each state has different regulations with how title insurance rates are set. In several states, title insurance rates do not have to be filed with the states. This are called “no file” or “not filed” states.
This doesn’t mean that there is no government oversight in these states. It just means that the state government doesn’t regulate the land title industry’s rates in this way. Instead, they might regulate in other ways such as requiring a certain license to handle real estate closings.
A complete list of “not filed” title insurance rate states: