What is a reissue rate? Federal Titlte & Escrow company explains it the best, "Simply put, a reissue rate is a homebuyer discount on the cost of an owner's title insurance policy." Below are some quick tips from Federal Title that makes it super easy to understand!
How do I qualify for a reissue rate discount?
A reissue rate is available to a homebuyer when:
- The seller has owned the property for less than ten (10) years; and
- The seller purchased an owner’s title insurance policy within that ten (10) year period
Does Federal Title seek out a reissue rate discount on behalf of the homebuyer?
Yes. If the seller has owned the property for less than ten (10) years, Federal Title will search its underwriter’s database for a prior policy and/or request evidence of a prior policy from the seller
Do I have to use the same title insurance underwriter?
No. If the title company you selected underwrites through a different title insurance underwriter than the title insurance underwriter that issued the seller’s policy, you still qualify for a reissue rate.
What is the amount of the reissue rate discount?
In Maryland and the District of Columbia, the homebuyer receives a 40% discount based on the prior policy (seller’s policy) coverage amount.
For example, let's say a homebuyer needs a policy to cover a $500,000 purchase, while the seller's existing policy coverage amount is for $400,000. The 40% reissue rate discount would apply to the first $400,000, and the homebuyer would pay full price for the remaining $100,000.
On standard owner's coverage for a Maryland property, this would amount to a savings of approximately $504.
For more information visit reissue rates explained