6% Increase In Title Insurance Premiums from CATIC
First Title Insurance Premium Increase in 23 Years
When you are buying a home or refinancing, you are required by the lender to purchase title search so that the ownership of the property, the collateral, is insured against loss due to title issues that may pop up after the sale. Since the additional cost of also insuring the homeowners themselves is relatively low, an owners title policy is also usually purchased. Title insurance is a one time fee policy that remains in effect until the property is conveyed again. The cost of title insurance is set by statute and regulated by the Connecticut General Assembly. At Glouzgal Ramos Groth, we write policies for Connecticut Attorneys Title Insurance Company, or CATIC, due to the ease of dealing with a company dedicated to our State.
With increasing regulations in modern times, and especially with the additional regulations imposed by the new TILA RESPA Integrated Disclosures (“TRID”), the cost of compliance for attorneys and title insurance companies has increased. CATIC has therefore lobbied and received approval for an increases of title insurance premium for the first time since 1992. The increased cost of title insurance will be 25 cents per thousand dollars of insurance ($25.oo per $100,000.00 of property value). This amounts to just a 6% increase in rates. The increase in cost of title insurance takes effect January 1, 2016.
Below is a chart supplied by CATIC to show the increased cost of insurance based on home value:
Please note that Expanded Protection Policies, which offer a few additional protections, such as future fraud, are offered at a 10% policy increase.