What's included in the premium?

In Pennsylvania we have an all - inclusive rate for title insurance. It bundles together the insurance premium, the cost of executing the title search, and the settlement fee.

While the convenience of paying a one- time fee at settlement and incorporating the charges for the search with the insurance premium is obvious, some people look at the amount (approximately 1% of the sales price) and think the charge is steep from an industry which only experiences modest rates of losses compared to casualty insurers.
When you consider, however that the one-time fee covers:

    •     the property for as long as the owner and his heirs own it,
    •     all title searching and examination, even multiple searches, and
    •     the costs of settlement

it becomes clear that land title insurance premiums buy you a good deal more than do casualty - type premiums. Although the land title insurance industry certainly offers insurance protection, comparing casualty and land title insurance rates is like comparing apples and oranges. The protection you get from land title insurance is unique.