What is Title Insurance in Ohio?
Title insurance is an important cost component within Closing Costs that always intrigues a first time home buyer. Title insurance in Ohio 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 Ohio title insurance policies: Lender’s Title Insurance Policy and Owner’s Title Insurance Policy.
Lenders in Ohio often require borrowers to purchase an Ohio Lender’s Title Insurance Policy which guarantees protection for Ohio lenders against issues arising out of defects on the title of an Ohio property. On the other hand, the Ohio Owner's Title Insurance Policy protects the buyer against claims and liens.
Title insurance policy premiums in Ohio 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 Ohio title insurance calculator.
How much does Title Insurance Cost in Ohio?
Title insurance costs are quite discreet in Ohio. A total of 5 slabs are defined for the owner’s policy. Ohio requires you to pay a minimum of $175 for the owner’s policy when closing a home.
One of the distinctive things about title insurance in Ohio is a well laid out slab for lender’s policy as well unlike other states where it is mostly a flat rate across counties.
Overall a $200,000 home in Ohio will cost around $1,087 and $763 for owner’s and lender’s policy respectively, totaling up to $1,850.
To give a perspective, these 3 use cases give you a complete idea of what to expect when closing in Ohio.
- For a purchase price of a $250,000 property in Ohio with a 20% down payment ($70,000), the cost of title insurance policy and lender's policy are $1,312 and $925 respectively.
- For a purchase price of a $250,000 property in Ohio bought with full cash, the cost of the title insurance owner's policy is $1,312.
- For a purchase price of a $500,000 property in Ohio with a 20% down payment ($100,000), the cost of title insurance owner's policy and lender's policy are $2,187 and $1550 respectively.
- For a purchase price of a $500,000 property in Ohio bought with full cash, the cost of the title insurance owner's policy is $2,187.
- For a purchase price of a $1,000,000 property in Ohio with a 20% down payment ($200,000), the cost of title insurance owner's policy and lender's policy are $3,562 and $2,675 respectively.
- For a purchase price of a $1,000,000 property in Ohio bought with full cash, the cost of the title insurance owner's policy is $2,675.
Please note, these costs are excluding any endorsement or lien on the property. Any endorsement will add up to the cost.
How to Calculate Title Insurance for Ohio?
As mentioned, both lender and owner’s policies are segregated in 5 different slabs. These cost brackets are given below:
Cost of Owner’s Policy
| Property Value | Rate |
| Up to $150,000 of liability written | $5.75 |
| Over $150,000 and up to $250,000 | $4.50 |
| Over $250,000 and up to $500,000 | $3.50 |
| Over $500,000 and up to $10,000,000 | $2.75 |
| Over $10,000,000 | $2.25 |
Minimum Premium $125.00
Cost of Lender’s Policy
| Property Value | Rate |
| Up to $150,000 of liability written | $4.00 |
| Over $150,000 and up to $250,000 | $3.25 |
| Over $250,000 and up to $500,000 | $2.50 |
| Over $500,000 and up to $10,000,000 | $2.25 |
| Over $10,000,000 | $2.00 |
Minimum Premium $125.00
Say you want to calculate the cost of the owner's title policy for a $300,000 property. The total cost will be:
What is the Owner’s Title policy in Ohio?
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 Ohio?
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 Ohio?
There are a number of things that are not covered by title insurance. Some of them could be:
- Damages due to natural calamities
- Damage due to a fire
- Infestation
- Damages happening from unaccounted items during the inspection and much more.
How long is the title policy valid in Ohio?
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 Ohio?
Title insurance rates in Ohio are regulated by the Department of Financial and Professional Regulation. According to the financial institution code (20 ILCS 1205/1) of Ohio, the department is authorized to examine, license, and regulate financial institutions which also include title companies.
Who Pays for Title Insurance in Ohio?
The cost for the owner’s policy is split between the buyer and the seller in many counties in Ohio. On the other hand, the cost of the lender's policy is paid by the buyer most of the time.
Is Title Insurance needed in Ohio?
Yes, title insurance is a must have for every buyer buying properties across all counties in Ohio. This is because the land and the property may have various rights that might be diversified across multiple owners. For example, if property taxes are pending for the property, the government can have a lien against it without the new owner ever knowing about it.
However, if the incoming new owner opts for title insurance, these discrepancies will be revealed during the title search, cautioning, and preventing them to sign the papers.
Should you shop for title insurance in Ohio?
You can definitely shop for title insurance in the state of Ohio 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 Ohio?
Technically there is no discount on title insurance in Ohio. 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 $200 for the Lender’s Policy.