New York Title Insurance Calculator

What is Title Insurance?

Title insurance is an important cost component within Closing Costs that always intrigues a first time home buyer. Title insurance in New York 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 New York title insurance policies: Lender’s Title Insurance Policy and Owner’s Title Insurance Policy.

Lenders in New York often require borrowers to purchase a New York Lender’s Title Insurance Policy which guarantees protection for New York lenders against issues arising out of defects on the title of a New York property. On the other hand, the New York Owner's Title Insurance Policy protects the buyer against claims and liens. 

Title insurance policy premiums in New York show up as line items within 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 New York title, insurance calculator.

How much does Title Insurance Cost in New York?

New York is divided into 2 zones with their own cost slabs. Prices apply based on the zone, the property is located. Overall, a $200,000 home will cost around $1,063 in the owner’s title policy while the lender’s policy would cost $887. 

Loan policy charges are significant in New York that shoots up the overall cost of title insurance. 

The average sale price for homes in New York is more than $600k which is probably the reason we see more elaborate rate slabs for both zone 1 and 2.  

Please note, these costs are excluding any endorsement or lien on the property. Any endorsement will add up to the cost. 

These 3 use cases give you a complete idea of what to expect when closing in New York. 

• For a purchase price of a $650,000 property in New York (Zone 2) with a 20% down payment ($70,000), the cost of title insurance policy and lender's policy are $2,958 and $2,477 respectively. 
• For a purchase price of a $650,000 property in New York bought with full cash, the cost of the title insurance owner's policy is $2,704 
• For a purchase price of a $1,000,000 property in New York with a 20% down payment ($200,000), the cost of title insurance owner's policy and lender's policy are $4,281 and $3,575 respectively. 
• For a purchase price of a $1,000,000 property in New York bought with full cash, the cost of the title insurance owner's policy is $4,281.

How to Calculate Title Insurance Cost for New York?

New York title insurance costs are 9 cost brackets or slabs that you should take into account to calculate the total title insurance cost for your property. 

For Zone 1 the costs are:

Zone 1 counties include:

Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, St. Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, Steuben, Tioga, Tompkins, Warren, Washington, Wayne, Wyoming, and Yates.

Zone 2 costs are as follows:

Zone 2 counties include:

Albany, Bronx, Columbia, Dutchess, Greene, Kings, Nassau, New York, Orange, Putnam, Queens, Rensselaer, Richmond, Rockland, Suffolk, Sullivan, Ulster, and Westchester. 

Say you want to calculate the cost of the owner's title policy for a $500,000 property in Zone 2. The total cost will be:

What is the Owner’s Title policy in New York?

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 constitutes the major share of the title insurance cost.

What is Lender’s Title policy in New York?

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 does Title Insurance not cover in New York?

There are a number of things that are not covered by title insurance. Some of them could be:

• Expenses due to natural calamities
• Losses due to a fire
• Infestation
• Damages happening from unaccounted items during the inspection and much more.

How long does it take to get Title Insurance in New York?

It usually takes 12-14 days to process the policy but that can differ depending on multiple reasons. Some property types that need a series of inspections may take more time to complete all the paperwork. Since New York has temporarily passed a bill for remote online notarization, the processing time is now expected to come down further.

How long is the title policy valid in New York?

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. The lender’s policy is valid till the mortgage is paid back.

Who regulates Title Insurance prices in New York?

Title insurance rates are regulated by the Department of Financial Services in New York. The institution offers licenses to title companies while the Title Insurance Rate Service Association or TIRSA, which is a rate service organization licensed by the organization decides the rate, rating rules, forms, and endorsements on behalf of its member title insurance companies.

Who Pays for Title Insurance in New York?

The buyer is responsible for paying both the lender's as well as the owner's policy. However, negotiations between the parties may lead the seller to pay for the insurance.  

Do I need the Title Policy in New York?

Buying the owner's policy is not legally enforced in New York. However, unknown defects such as missing heirs, incorrect documentation, unjust court proceedings, etc. can also pop up. These are not revealed in the title search and this is where the owner's policy comes to the rescue and protects the ownership of the buyer.

As a general rule of thumb, it is always best to purchase the owner's title policy and be safe from such unforeseen conditions.

Should you shop for title insurance in New York?

You can definitely shop for title insurance in the state of New York 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 New York?

Technically there is no discount on title insurance in New York. 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 for the Lender’s Policy.