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Nicole Said:

Is the cost of title insurance for a house determined by the selling price?

We Answered:

Title insurance differs in a number of ways from other insurance. Where most insurance provides coverage against a claim for specific kinds of loss for a specific period (think term life insurance or car insurance), title insurance is a one time cost and generally insures against losses caused by title problems that have occurred in the past! In fact, getting a title insurance policy often means that previous problems, title defects or liens must be fixed before a transaction takes place.

As for the cost of title insurance, it is not necessarily completely dependent on the cost of the property, although there is usually some part of the cost dependent on price. If you live in Canada, there are a number of insurance companies who provide flat fee title insurance as low as a few hundred dollars, for properties up to a certain price.