What is Title Insurance in Indiana?
Title insurance is an important cost component within Closing Costs that always intrigues a first time home buyer. Title insurance in Indiana 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 Indiana title insurance policies: Lender’s Title Insurance Policy and Owner’s Title Insurance Policy.
Lenders in Indiana often require borrowers to purchase an Indiana Lender’s Title Insurance Policy which guarantees protection for Indiana lenders against issues arising out of defects on the title of an Indiana property. On the other hand, the Indiana Owner's Title Insurance Policy protects the buyer against claims and liens.
Title insurance policy premiums in Indiana 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 Indiana title insurance calculator.
How much does Title Insurance cost in Indiana?
Indiana is not one of the most happening states when it comes to volumes of real estate transactions. The average value of homes sold in Indiana is $185,805.
Overall, a property of $200,000 costs $545 for the owner’s policy while a sum of $50 is charged for the lender’s policy that safeguards the lender.
Here are some more use cases:
- For a purchase price of a $350,000 property in Indiana with a 20% down payment ($70,000), the cost of title insurance policy and lender's policy are $695 and $50 respectively.
- For a purchase price of a $350,000 property in Indiana bought with full cash, the cost of the title insurance owner's policy is $695.
- For a purchase price of a $500,000 property in Indiana with a 20% down payment ($100,000), the cost of the title insurance owner's policy and lender's policy are $845 and $50 respectively.
- For a purchase price of a $500,000 property in Indiana bought with full cash, the cost of the title insurance owner's policy is $845.
- For a purchase price of a $1,000,000 property in Indiana with a 20% downpayment ($200,000), the cost of the title insurance owner's policy and lender's policy are $1,500 and $50 respectively.
- For a purchase price of a $1,000,000 property in Indiana bought with full cash, the cost of the title insurance owner's policy is $1,500.
How is Title Insurance Calculated in Indiana?
Here is the title insurance rate chart for Indiana:
| Minimum | Maximum | Rate (all fixed) |
| 0 | $50,000 | $150 |
| $50,000 | $55,000 | $200 |
| $55,000 | $65,000 | $240 |
| $65,000 | $75,000 | $280 |
| $75,000 | $85,000 | $310 |
| $85,000 | $95,000 | $330 |
| $95,000 | $105,000 | $350 |
| $105,000 | $115,000 | $370 |
| $115,000 | $125,000 | $380 |
| $125,000 | $135,000 | $400 |
| $135,000 | $145,000 | $420 |
| $145,000 | $155,000 | $440 |
| $155,000 | $165,000 | $460 |
| $165,000 | $175,000 | $480 |
| $175,000 | $185,000 | $500 |
| $185,000 | $195,000 | $520 |
| $195,000 | $220,000 | $545 |
| $220,000 | $245,000 | $570 |
| $245,000 | $270,000 | $595 |
| $270,000 | $295,000 | $620 |
| $295,000 | $320,000 | $645 |
| $320,000 | $345,000 | $670 |
| $345,000 | $370,000 | $695 |
| $370,000 | $395,000 | $720 |
| $395,000 | $420,000 | $745 |
| $420,000 | $445,000 | $770 |
| $445,000 | $470,000 | $795 |
| $470,000 | $495,000 | $820 |
| $495,000 | $520,000 | $845 |
| $520,000 | $545,000 | $870 |
| $545,000 | $570,000 | $895 |
| $570,000 | $595,000 | $920 |
| $595,000 | $620,000 | $945 |
| $620,000 | $645,000 | $970 |
| $645,000 | $670,000 | $995 |
| $670,000 | $695,000 | $1,020 |
| $695,000 | $720,000 | $1,045 |
| $720,000 | $745,000 | $1,070 |
| $745,000 | $770,000 | $1,095 |
| $770,000 | $795,000 | $1,120 |
| $795,000 | $820,000 | $1,150 |
| $820,000 | $845,000 | $1,200 |
| $845,000 | $870,000 | $1,250 |
| $870,000 | $895,000 | $1,300 |
| $895,000 | $920,000 | $1,350 |
| $920,000 | $945,000 | $1,400 |
| $945,000 | $970,000 | $1,450 |
| $970,000 | $1,000,000 | $1,500 |
| $1,000,000 | INFINITY | Add $1 per $1000 in excess |
What is the Owner's Title policy in Indiana?
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 Indiana?
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.
Who pays for Title Insurance in Indiana?
The cost of title insurance is negotiable in Indiana but buyers generally expect the seller to pay. It won’t be incorrect to say that it is customary for the seller to pay for both policies.
What is not covered in Title Insurance in Indiana?
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.
- Damage due to a fire
- Damages due to natural calamities such as thunderstorms.
How long is the title policy valid in Indiana?
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 prices in Indiana?
The Indiana Department of Insurance regulates the title insurance mechanics in the state of Indiana.
Who pays for Title Insurance in Indiana?
Title insurance fees can be paid by either of the parties. However, in Indiana, the buyer pays for both policies.
Is Title insurance required in Indiana?
Like other states, the loan policy is generally required while the owner’s policy is optional in Indiana.
Should you shop for title insurance in Indiana?
You can definitely shop for title insurance in the state of Indiana 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 Indiana?
Technically there is no discount on title insurance in Indiana. 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 $50 for the Lender’s Policy.