Whenever we buy insurance, we inevitably ask ourselves – will we need insurance and is it worth it? The calculation in our heads weighs the cost of the premium against the potential cost of things going wrong, adding in our own assumptions about risk. With title insurance, the cost-to-benefit analysis has an obvious result: it pays off to protect the biggest investment many of us will ever make. We’ll discuss how much is title insurance and the benefits to having title insurance.
Average Title Insurance Cost
The average cost of title insurance in NSW with First Title ranges from $425.66* for a strata property with a purchase price up to $500K to about $1,187.01* for a house with a purchase price between $1.75m and $2m. And since title insurance does not expire as long as you own the property, this protection can be long-lasting. That means that even if you find out about a covered issue years after settlement, you’ll still be covered through your title insurance policy. What’s more, you only pay your premium once, with no excess if you make a claim.
How the Cost of Title Insurance is Calculated
The cost of title insurance is based on the state, property type and purchase price. For example, a house bought at $1,000,000 could have a premium of $945.90*, while a strata title or vacant land for the same purchase price could cost $756.72* to insure. Even in a more expensive area like Sydney, the premium for the median residential property price ($1.6M) is just $1,182.21* – a minor error, like a miscalculation of outstanding council rates, could easily amount to double that.
If you’re about to purchase a property, it’s a good idea to weigh up the cost of title insurance, in comparison to the legal costs to respond to a potential unknown risk. The easiest way to find out how much you’d pay is to get a quote today.
*Premiums vary slightly due to differences in stamp duty across states. Premiums quoted are for NSW and correct as of May 2025.
The Benefits of Getting Title Insurance
When buying property, many buyers concentrate on securing a mortgage and arranging inspections but often neglect the importance of Title Insurance. This specific insurance offers financial protection against legal issues and hidden risks related to a property’s ownership. Unlike standard home insurance, which covers physical damage, Title Insurance protects buyers and lenders from title defects, fraud, and certain unknown risks that may emerge after settlement. Here are some key benefits of obtaining Title Insurance:
Covers Illegal Building Work
If a previous owner made unauthorised renovations or constructions without the necessary council approvals, you could be responsible for rectifying the unapproved building works, or applying for the relevant permits if the council takes an issue after you have taken ownership of the property. This could involve costs for demolition, repairs, or compliance approvals. Title Insurance can cover these unexpected expenses, shielding homeowners from costs that they would otherwise incur due to the undisclosed illegal building work.
Protection Against Title Fraud
Title fraud happens when someone forges property documents to falsely transfer ownership or secure loans against your home. This can lead to significant financial loss and legal issues if you discover that your property has been involved in a fraudulent transaction. Title Insurance can help protect homeowners against title fraud and covers the costs and expenses to restore the homeowner’s rightful ownership.
Covers Outstanding Council and Water Rates
If council rates, water charges, or land tax is incorrectly calculated or unidentified, the new owner may be held responsible to make these payments instead. Title Insurance provides cover for unadjusted and unpaid rates or charges that should have been paid by the vendor at settlement.
Defends Against Ownership Disputes
In some cases, another party may claim legal ownership rights over the property, such as an unknown heir of a previous owner or an error in historical property records. Title Insurance can protect buyers from ownership disputes, covering legal fees and ensuring your property rights are defended.
The Cost of Not Getting Title Insurance
After purchasing a property, we like to think that the hard part is over and we can finally relax, move into our new home or enjoy the fruits of our investment. But there are many issues that can crop up after settlement that could have remained hidden even during the conveyancing process. Title Insurance protects you against certain unknown risks, which can include illegal building works, encroachment, unadjusted rates or charges, and fraud.
For instance, one of our clients would have been $140k out of pocket after settling the purchase of their home because important parts of the building had been built without council approval. Another client could have lost $33k over an encroachment issue, a common problem identified only after settlement.
First Title covered the cost for them, saving our clients thousands of dollars.
Title Insurance from First Title
Protecting/insuring your property against unknown title defects is as crucial as securing a mortgage or organising inspections. Title Insurance provides peace of mind by safeguarding homeowners against boundary disputes, illegal building work, unpaid council rates, ownership claims, and title fraud. Without it, you may encounter unexpected financial and legal challenges that could be costly.
The good news is that Title Insurance can be affordable. With First Title, you can protect your property investment at a reasonable price, ensuring coverage against hidden risks after settlement.
Protect your home with confidence! Learn more about things to consider when getting Title Insurance and then contact First Title today for a quote.
