What is Title Insurance in Colorado?
Title insurance is an important cost component within Closing Costs that always intrigues a first time home buyer. Title insurance in Colorado protects buyers and lenders from financial liabilities that may arise due to a title defect or a hidden lien.
Have a look at our Title Insurance explainer video to see how title insurance can protect your lender and your ownership in case of a title defect.
There are two types of Colorado title insurance policies: Lender’s Title Insurance Policy and Owner’s Title Insurance Policy.
Lenders in Colorado often require borrowers to purchase a Colorado Lender’s Title Insurance Policy which guarantees protection for Colorado lenders against issues arising out of defects on the title of a Colorado property. On the other hand, the Colorado Owner's Title Insurance Policy protects the buyer against claims and liens.
Title insurance policy premiums in Colorado show up as an itemized list of a closing cost worksheet for a buyer and seller such as a Closing Disclosure, Loan Estimate, HUD-1, or an ALTA Settlement Statement. If you're looking to get a preview of what these costs look like, use this free Colorado title insurance calculator.
How much does title insurance cost in Colorado?
For a property of $420,000, you are going to pay a total of $1,427 for the owner's policy and $175 for the loan policy, if issued simultaneously.
Here are a few other use cases:
- For a purchase price of a $300,000 property in Colorado with a 20% down payment ($60,000), the cost of title insurance policy and lender's policy are $1,205 and $175 respectively.
- For a purchase price of a $300,000 property in Colorado bought with full cash, the cost of the title insurance owner's policy is $1,205.
- For a purchase price of a $400,000 property in Colorado with a 20% down payment ($100,000), the cost of the title insurance owner's policy and lender's policy are $1,390 and $175 respectively.
- For a purchase price of a $500,000 property in Colorado bought with full cash, the cost of the title insurance owner's policy is $1,390
- For a purchase price of a $5,00,000 property in Colorado with a 20% downpayment ($200,000), the cost of the title insurance owner's policy and lender's policy are $1,575 and $175 respectively.
- For a purchase price of a $5,00,000 property in Colorado bought with full cash, the cost of the title insurance owner's policy is $1,575
How is Title Insurance Calculated in Colorado?
Colorado has many pricing slabs that are divided into multiple zones. Here we will only consider El Paso county for cost calculation.
| Insurance Amount | Basic Rate | Insurance Amount | Basic Rate |
| $5,000 | $625.00 | $255,000 | $1,122.00 |
| $10,000 | $625.00 | $260,000 | $1,131.00 |
| $15,000 | $625.00 | $265,000 | $1,140.00 |
| $20,000 | $625.00 | $270,000 | $1,150.00 |
| $25,000 | $625.00 | $275,000 | $1,159.00 |
| $30,000 | $651.00 | $280,000 | $1,168.00 |
| $35,000 | $665.00 | $285,000 | $1,177.00 |
| $40,000 | $679.00 | $290,000 | $1,187.00 |
| $45,000 | $693.00 | $295,000 | $1,196.00 |
| $50,000 | $715.00 | $300,000 | $1,205.00 |
| $55,000 | $727.00 | $305,000 | $1,214.00 |
| $60,000 | $739.00 | $310,000 | $1,224.00 |
| $65,000 | $751.00 | $315,000 | $1,233.00 |
| $70,000 | $763.00 | $320,000 | $1,242.00 |
| $75,000 | $775.00 | $325,000 | $1,251.00 |
| $80,000 | $787.00 | $330,000 | $1,261.00 |
| $85,000 | $799.00 | $335,000 | $1,270.00 |
| $90,000 | $811.00 | $340,000 | $1,279.00 |
| $95,000 | $823.00 | $345,000 | $1,288.00 |
| $100,000 | $835.00 | $350,000 | $1,298.00 |
| $105,000 | $844.00 | $355,000 | $1,307.00 |
| $110,000 | $854.00 | $360,000 | $1,316.00 |
| $115,000 | $863.00 | $365,000 | $1,325.00 |
| $120,000 | $872.00 | $370,000 | $1,335.00 |
| $125,000 | $881.00 | $375,000 | $1,344.00 |
| $130,000 | $891.00 | $380,000 | $1,353.00 |
| $135,000 | $900.00 | $385,000 | $1,362.00 |
| $140,000 | $909.00 | $390,000 | $1,372.00 |
| $145,000 | $918.00 | $395,000 | $1,381.00 |
| $150,000 | $928.00 | $400,000 | $1,390.00 |
| $155,000 | $937.00 | $405,000 | $1,399.00 |
| $160,000 | $946.00 | $410,000 | $1,409.00 |
| $165,000 | $955.00 | $415,000 | $1,418.00 |
| $170,000 | $965.00 | $420,000 | $1,427.00 |
| $175,000 | $974.00 | $425,000 | $1,436.00 |
| $180,000 | $983.00 | $430,000 | $1,446.00 |
| $185,000 | $992.00 | $435,000 | $1,455.00 |
| $190,000 | $1,002.00 | $440,000 | $1,464.00 |
| $195,000 | $1,011.00 | $445,000 | $1,473.00 |
| $200,000 | $1,020.00 | $450,000 | $1,483.00 |
| $205,000 | $1,029.00 | $455,000 | $1,492.00 |
| $210,000 | $1,039.00 | $460,000 | $1,501.00 |
| $215,000 | $1,048.00 | $465,000 | $1,510.00 |
| $220,000 | $1,057.00 | $470,000 | $1,520.00 |
| $225,000 | $1,066.00 | $475,000 | $1,529.00 |
| $230,000 | $1,076.00 | $480,000 | $1,538.00 |
| $235,000 | $1,085.00 | $485,000 | $1,547.00 |
| $240,000 | $1,094.00 | $490,000 | $1,557.00 |
| $245,000 | $1,103.00 | $495,000 | $1,566.00 |
| $250,000 | $1,113.00 | $500,000 | $1,575.00 |
| For liability over $500,000 up to $1,000,000 | Add $1.75 per $1,000 | ||
| For liability over $1,000,000 up to $3,000,000 | Add $1.65 per $1,000 | ||
| For liability over $3,000,000 up to $5,000,000 | Add $1.55 per $1,000 | ||
| For liability over $5,000,000 up to $8,000,000 | Add $1.45 per $1,000 | ||
| For liability over $8,000,000 up to $10,000,000 | Add $1.35 per $1,000 | ||
| For liability over $10,000,000 up to $50,000,000 | Add $1.20 per $1,000 | ||
| For liability over $50,000,000 | Add $1.00 per $1,000 | ||
What is the Owner's Title policy in Colorado?
The owner's policy is a legal document that shields the owners from unknown defects such as missing heirs, incorrect documentation, unjust court proceedings, and protects their ownership. The owner’s policy contributes to the majority of the costs that go into purchasing the title insurance.
What is Lender’s Title policy in Colorado?
The lender’s policy is often purchased along with the owner’s policy. It protects the lender from title defects such as a pending construction lien on the property, errors in the title, and other issues that may arise after the title has been transferred to the buyer.
What is not covered in Title Insurance in Colorado?
Title insurance may not cover the following:
- Losses due to infestation
- Financial losses due to repair and maintenance of items that were not revealed during the property inspection.
- Damages due to natural calamities such as thunderstorms.
- Damage due to a fire
How long is the title policy valid in Colorado?
The title policy remains valid till the time you remain the owner of the property. Only when you decide to sell, a new policy must be made in the name of the buyer.
Who regulates Title Insurance in Colorado?
The Department of Insurance is responsible for the title insurance landscape in Colorado. However, policy prices across the state vary from one title company to another.
Who pays for Title Insurance in Colorado?
Title insurance fees can be paid by either of the parties. However, as a custom, the seller pays for the owner’s policy while the buyer pays for the lender’s policy.
Is Title insurance required in Colorado?
Title insurance is not legally required in the state of Colorado. However, any mortgage underwriter would need you to purchase a lender’s policy. As a rule of thumb, it is always best to purchase both policies simultaneously.
Should you shop for title insurance in Colorado?
You can definitely shop for title insurance in the state of Colorado by approaching any reputable title company. However, if you are skeptical, you can ask your agent or lender to help you out with the process.
Is there any discount on Title Insurance Policy in Colorado?
Technically there is no discount on title insurance in Colorado. But what you can do is go for simultaneous issuing of both Owner’s Policy and Lender’s Policy at the same time. This way you only pay a fixed amount of $175 for the Lender’s Policy.