Monday, March 30, 2009

PA title insurance rate increase in the news

Fees for some documents, such as a home closing service letter, would more than double under the proposal. Discounts for such things as home refinancings — where previous title searches were completed for the initial home purchase — would be eliminated.

Title rates are subject to approval by the Pennsylvania Insurance Department.

The industry contends its revenues declined 16 percent during a recent one-year period, claims it paid rose by nearly 20 percent, and reserves for unpaid Pennsylvania claims increased by 42 percent.

"All of these factors support the increase in title insurance rates proposed in this filing," Ronald Chronister, a Harrisburg consultant representing the title companies, wrote to the insurance department. "At the same time, as stated above, the Rating Bureau believes that the increase will have a minimal impact ($40 per closing) on the cost of title insurance for consumers."


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