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  • Blue Pointe Title

Cost of Title Insurance in Michigan

Updated: May 10, 2023

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Buying a home can be exciting. All you want to do is get through the process so that you can move in and begin the next phase of your future. But before you can start unloading the moving truck, you will have to attend your closing. Here you can expect to have to sign a lot of documents and hand over the funds to cover your closing costs. And that includes title insurance fees.

What is Included in Closing Costs?

Closing costs can add up due to all of the things that are required when it comes to closings. Some are related to the mortgage, such as loan origination fees, credit report fees, and escrow fees. And then others are related to the property, which include:

  • Real estate transfer tax

  • Appraisal fees

  • Inspection fees

  • Title search fees

  • Property taxes

  • Homeowner’s insurance policy premium

  • Homeowners association fees

Then, of course, you have to consider the cost of title insurance. So having an idea of what to expect when it comes to this fee can be very beneficial when planning for the closing.

What is the Cost of Title Insurance in Michigan?

The cost of title insurance in Michigan depends on the value of the property. It also depends on the type of title insurance you purchase. To give you a general idea of how it is calculated, for an ALTA owner’s policy, the cost may be $275 for $1,000 in coverage, then $5.20 per $1,000 up to $50,000. It then drops to $4.20 per $1,000… and continues to decrease in price per 1000 as the value of the home goes up. Lenders’ title insurance policies tend to be cheaper while enhanced policies are higher.

But don’t fret. You don’t need to pull out a calculator and try your hand at math. An experienced title agent will be able to easily calculate the correct cost for you so that you know just what to expect.

Is Title Insurance Worth It?

Imagine having peace of mind knowing your rights to your property cannot be jeopardized. This is a good feeling - especially when it comes to your family’s home. And it is the kind of comfort that title insurance can bring.

Before your closing, your title company will perform a title search to ensure that the seller has the right to sell you the property - and that there are no encumbrances on the title. Unfortunately, sometimes things can get missed, such as erroneously recorded deeds or judgments, tax liens, easements, encroachments, unknown heirs, and so much more.

Once you take title to the property, these things become your title issue to deal with should they arise. And, depending on what it is, it could be a costly fix - even including a legal battle or threatening your right to title.

With title insurance, if any title defects come up, you can file a claim and have confidence that it will be handled. So, is the cost of title insurance in Michigan worth it? Absolutely.

Learn More About Title Insurance

At Blue Pointe Title Agency, we are with our clients throughout every step of the closing process - and that means addressing questions and concerns about title insurance and its cost. If you are looking for a title company or would like to learn more about title insurance, contact us today at 517-258-1511.



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