Pennsylvania home buyers have something else to fret about along with fat property tax bills and higher mortgage rates -- the cost of title insurance.

		Chart The cost of a mortgage

A new survey by Bankrate.com says state residents are paying among the highest rates in the country for such insurance, which lenders require home buyers to purchase to ensure there are no hidden liens on a property.

The findings were part of a broader look at mortgage closing costs, which showed Pennsylvania had the 12th highest mortgage-related fees in the country. Costs averaged $3,175 on a sample $200,000 loan, about 5 percent higher than the nationwide average of $3,024. Costs excluded property taxes and escrow payments.

The survey identified title insurance as the main culprit pushing up overall closing costs in the state. It found the cost of the insurance was about 75 percent higher than average: $1,161 vs. $663.

Most other individual fees paid at closing, such as appraisal, application and document preparation fees, were in line with the national averages, according to the survey.

In Pennsylvania, title insurance rates essentially are the same across the state. They are set uniformly by a rating bureau composed of member companies and approved by the Pennsylvania Insurance Department. Rates are tiered, based on the size of the loan.

A spokeswoman for the title insurance industry in the state criticized the Bankrate.com study, saying it likely overinflated the true cost of title insurance compared with other states.

Pennsylvania's title insurance rates include some fees that people in many states typically pay extra for, including search and settlement costs, said Adrienne Verdone, president of the Pennsylvania Land Title Association.

"I don't know the [title insurance] rates in every state, but I can tell you that there are not many states that have all-inclusive rates," she said. "I believe they're comparing apples to oranges."

But a local professor who's been studying the title insurance industry for several years under a research grant said the report was right on.

Extra services included in title insurance rates here account for only a relatively small portion of the overall cost, said Joseph Eaton, professor emeritus at the University of Pittsburgh's Graduate School of Public and International Affairs.

"Pennsylvania rates are among the highest in the country, no question," he said.

Ms. Verdone said she was uncertain what rates were in other states, but said it was "not accurate to say our charges are higher." But she was unable to provide examples of states with higher rates than Pennsylvania.

At the state insurance department, Deputy Commissioner Randy Rohrbaugh said he doesn't believe rates in Pennsylvania are out of line, but added the department doesn't check rates in other states.

In Pennsylvania, like a number of states, it does no good for consumers to shop around for a better rate on title insurance.

Although several title insurance companies in Pennsylvania have opted not to adhere to the uniform rates set by the rating bureau and thus file rates directly with the insurance department, their rates "are very similar" to the rest of the companies, Mr. Rohrbaugh said.

Mr. Eaton, the professor, contends that in Pennsylvania and other highly regulated states, the elimination of market competition has meant consumers are paying too much for title insurance.

"Most industries don't want to be regulated by government but the title insurance industry likes the government to set its prices" because regulation has "eliminated market competition," he said. "As a result, the rates are high."

He noted that in Iowa, where private title insurance has been outlawed for nearly 60 years and where title protection is offered through a title guarantee program run by the state, coverage costs a flat $110 on a loan of up to $500,000.

At those rates, which took effect Jan. 1, the state "expects to make a profit," Mr. Eaton said.

Mr. Rohrbaugh said he would agree that "there are pockets in Pennsylvania where title insurance should be much cheaper."

But he said the title insurance industry in the state is "controlled by attorneys and title insurance companies," who wield a lot of political clout. Anyone who attempts to change the current system, which is set by law, "finds they are not successful," he said.

Mr. Eaton said title insurance coverage is "pretty close to the same around the country."

"They all use the American Land Title Association forms. Since they use the same policies, the question is, 'Why does it cost so much more in one state than the other?' "

Although the cost of title insurance is a small part of the overall expense of buying a home, it takes on greater significance for home buyers struggling to come up with a down payment, Mr. Eaton said.

"For low income people, closing costs are very important because that's cash up front."