Alabama Title Insurance Cost

Alabama does not set title insurance rates centrally. It is a file-and-use state: each underwriter files its own schedule with the Alabama Department of Insurance, and agents quote from whichever company they write through. Two perfectly legitimate agents can therefore give you different premiums for identical coverage.

A worked example

On one commonly used filed schedule, the standard ALTA owner's policy is charged at $3.25 per thousand on the first $500,000, with a minimum premium of $325. The liability rounds up to the whole thousand before the rate is applied.

• $100,000 purchase — $325 (the minimum applies)
• $200,000 purchase — $650
• $300,000 purchase — $975
• $500,000 purchase — $1,625

The enhanced ALTA Homeowner's Policy runs higher, at $4.00 per thousand, and buys broader cover for a one-to-four family home.

The loan policy is usually $250

Where an owner's policy and a loan policy are issued at the same closing, the loan policy is typically a flat simultaneous-issue charge rather than a second full premium. On most filed schedules that is $250, provided the loan does not exceed the owner's amount.

Two credits worth asking about

A prior policy on the property may qualify the transaction for a 40% reissue credit on a purchase, or a 40% refinance credit on a refinance. On a $300,000 purchase that is around $390 back — enough to be worth digging the old policy out of a drawer before closing.

Ask which underwriter

Because rates are per-underwriter, "what does title insurance cost in Alabama" has no single answer. When you get a quote, ask which company it is written through, so you are comparing like with like.

Note: general information for Pennsylvania and Alabama property owners, not legal or tax advice. Rates, taxes, eligibility and deadlines are set by statute and by each state’s filed rate schedules and can change. Confirm the specifics with us and with a qualified professional before relying on them for a transaction.