How Much Is Title Insurance in Indiana?

Title insurance is a protective measure safeguarding property owners and lenders from financial losses due to defects in a property’s title. These defects can include undisclosed heirs, unpaid taxes, liens, or errors in public records, which could jeopardize ownership. Understanding these costs is important for property transactions in Indiana, helping individuals make informed decisions.

Factors Affecting the Price

The cost of title insurance in Indiana is influenced by the property’s value. For an owner’s policy, which protects the buyer, the premium relates directly to the purchase price. A higher sale price generally results in a higher premium. For a lender’s policy, typically required by mortgage lenders, the premium is based on the loan amount.

The type of policy also affects the price. While an owner’s policy is optional for a buyer, a lender’s policy is almost universally mandatory when financing a home purchase. Specific property characteristics or desired endorsements, which provide expanded coverage for particular risks, can influence the overall cost. Unusual title conditions or requests for special services might also lead to additional charges.

Calculating Your Title Insurance Premium

Title insurance rates in Indiana are filed with the Indiana Department of Insurance (IDOI). These filed rates primarily cover the risk premium and do not encompass all associated fees. The total cost often includes bundled services such as title search, examination, and closing services, processed as a single fee, typically ranging from $400 to $700.

The overall cost of title insurance in Indiana falls between 0.5% and 1% of the home’s sale price. For example, an owner’s policy for a property valued between $165,000 and $320,000 might range from $480 to $645. If both an owner’s and a lender’s policy are issued simultaneously, often referred to as a “simultaneous issue,” the lender’s policy premium is significantly reduced, sometimes to as little as an additional $25 or $50. An additional $5 fee, known as the Title Insurance Enforcement Fund Fee (TIEFF), is collected by the state for every policy issued. To obtain an accurate quote for a specific transaction, gather key details like the property’s sale price and loan amount, then contact title companies directly or utilize online calculators.

Understanding Who Pays

The responsibility for paying for title insurance in Indiana generally falls to the buyer. This typically includes the premium for both the owner’s and the lender’s policies. The lender’s policy is a requirement imposed by mortgage lenders to protect their investment, making its cost a standard part of the buyer’s closing expenses.

While buyer responsibility is common, payment allocation can be subject to negotiation between the buyer and seller. In some Indiana regions, it may be customary for the seller to cover the owner’s title policy cost. For cash purchases, where no lender’s policy is required, the buyer has more flexibility to negotiate who pays for the owner’s coverage.