Cost is always on the top of mind for all parties during a commercial real estate transaction. Many people want to know how much title insurance costs. But the truth is that title insurance costs can differ from state-to-state, or even within a state. In this article, we are going to talk about why commercial title insurance can cost more in certain states.
Title Insurance Differences Between States
Costs for commercial title insurance can differ significantly from state-to-state. While the commercial title insurance industry is highly regulated, regulations are different in every state. In many states, insurance premiums are set by state regulators or pre-approved. In some cases, you can deviate from these rates, but in other cases you have no choice but to use the rate by state mandate. To make things even more confusing, filed rates also differ widely based on the specific state in which the transaction is taking place. A commercial title insurance policy for a property in one state may cost $2500, while the same policy for that exact same property in another state may be twice that amount.
Title Insurance Regional Differences
Title insurance cost differences can also exist between different regions within a state. For example, urban areas and rural areas may have their own methods of operating, which may lead to differences in cost.
With so much potential variation in any commercial title transaction, it’s essential to partner with a title company that knows the customs of the state or locality in which your transaction is taking place.
Contact a Commercial Title Expert
If you are looking for help with your commercial real estate transaction, contact a commercial title expert at Commercial Partners Title Company today! Our team of escrow agents, title closers, underwriters, and more can help you through the details of your next transaction. We have decades of experience and are recognized as experts in the field of commercial title insurance in Minnesota and around the United States. Contact us today at our Minneapolis offices to learn more about our full range of services and see how we can help with your next transaction.