Uniform premiums are established each year by the New Mexico Insurance Department for every title policy issued in New Mexico. In 2005, for example, the basic premium for an Owner's Policy of $100,000 is $807.00 and $400,000 was $2247.00. Regular Mortgage Policy rates are 90% of the Owner's Policy rates, but Construction Loan rates are only $1.00 per $1000.00 of coverage.

As as result of the issuance of prior title policies or the simultaneous issue of policies in a single transaction, credits or discounts may be available to reduce actual premium costs. The most common one is the simultaneous issue of Owner's and Mortgage Title Policies where the buyer of the property is financing the purchase with a lender who requires a Mortgage Policy. If you (or your seller) purchase an Owner's Title Policy in an amount equal to the purchase price, the premium for the Mortgage Title Policy is only $30.00.
For calculating 2006 basic premiums for owner's policies, please refer to the Rate Table.

Remember, the Owner's Policy premium is charged only once -- at the time of purchase of your property, for coverage that can last a lifetime!

In addition to the above premium for a policy, there is a charge of $50.00 for each Commitment issued and charges for endorsements issued as described below.

An Owner's Policy will protect you against certain risks existing as of the date of the policy, such as liens, encumbrances and title defects, unless these risks are excepted from coverage as shown in SCHEDULE B-2 of your Commitment. The New Mexico Insurance Department has prepared the "NOTICE TO PROPOSED INSURED" to describe to you the additional coverages available in your owner's title policy. The following explanation of the pre-printed Exceptions 1-7 in SCHEDULE B-2 is intended to supplement the "NOTICE TO PROPSED INSURED"on how these Exceptions may be deleted/removed as exceptions to your policy coverage. These printed Exceptions are matters outside our search of the public records, and therefore special requirements need to be met in order to delete them and provide you with the additional/extended coverage.

Standard Exception 1 concerns protection against squatters, tenants, or others that may be in physical possession of your property. Exception 1 can be deleted from your policy (and the coverage added) with an affidavit from your sellers that they have sole possession of the property as a single family residence. There is no premium charge for this additional coverage.

Standard Exception 2 concerns protection against the unrecorded rights of one person to use the property of another (unrecorded easement). These usually consist of travel ways across the property, which have been continuously used by non-owners and/or of utility lines which cross the property.

A surveyor must inspect your property to see if such easement rights exist and produce a survey showing any. Any such easement rights disclosed by the survey will be added as specific exceptions to your policy. Exception 2 can then be deleted from your policy at no premium charge to provide you with coverage against any other unrecorded easements not shown in the survey. Survey costs will have to be paid.

Standard Exception 3 concerns survey protection primarily against the encroachment of structures, fences, walls, and the like onto easements located on the property or onto neighboring properties or streets, or onto your property from neighboring properties, and boundary line conflicts.

Again, a surveyor must inspect your property to see if any of these exist, and produce a survey showing any. Any encroachments or conflicts disclosed by the survey will be added as specific exemptions to your policy. Exemption 3 can then be deleted from your policy to provide you with coverage against any other encroachments and conflicts not shown on the survey. There is an additional premium charge for the coverage of 15% of your Owner's Policy premium, plus survey costs.

Standard Exception 4 Concerns protection against mechanic liens filed against your property after your closing and the date of your owner's title policy. State law permits unpaid contractors, subcontractors and material men to file liens on your property up to 90 to 120 days after their work is finished. These deadlines could occur after you have purchased the property, and you may have to pay the claimant if the sellers do not. We will require at lease an affidavit from your sellers that the 120-day lien period in all cases has expired. Exception 4 can then be deleted for an additional premium charge of $3.00 per $1000.00 of your Owner's Policy amount. If you are purchasing a newly completed home, this lien coverage may be desirable.

Standard Exception 5 concerns community property rights of your spouse, and can only be deleted (at no premium charge) if title is going to held by some entity other than a natural person.

Standard Exception 6 concerns the existence of navigable streams, arroyos or lakes on your property as shown on the survey. Any such waterways disclosed by the survey will be added as specific exception to your policy. Exception 6 can then be deleted for an additional premium charge of $32.00. Survey costs will have to be paid.

Standard Exception 7 concerns primarily the existence of mining claims, patent reservations and water rights on your property. This exception 7 can be modified to delete everything except "water rights, claims or title to water", particularly if your property is located in a platted subdivision, for an additional premium charge of $32.00.

We hope the above explanations are helpful to you in answering such questions as "do I need the extra coverage?" and "is the extra coverage worth the cost?" Only you can answer these questions, but do keep in mind that premiums for these policy coverages are only paid once and you are covered by your policy for life.