How are my title insurance premiums calculated?

Title insurance premiums are based on risk factors and the limit of the policy. For example, if you are purchasing a brand new home, there is little risk of an outstanding lien or judgement against the title. This will bring down your premiums. Similarly, if the total value of your home is low, the total value of your policy can also be low. The lower your policy limits, the lower the premium you will owe on a monthly or annual basis. Higher limit policies can be much pricier since the insurance company is taking on greater risk.