Title Insurance Cost Protection
Title insurance: one-time $500-$1,500 at closing. Owner's policy: protects you (optional, recommended). Lender's policy: protects bank (required if financed).
| Purchase price | — |
| Loan amount | — |
| State cost tier | — |
| Owner's rate | — |
| Lender's rate | — |
| Owner's policy | — |
| Lender's policy | — |
| Both bundled | — |
Title insurance is a one-time premium paid at closing protecting against title defects (undisclosed liens, fraud, missing heirs, errors in records). Owner's policy: optional but highly recommended ($500-1,500). Lender's policy: mandatory if financing, but doesn't protect YOU.
Owner's vs Lender's
Owner's policy: protects YOUR equity. Pays you if title defect found. Lasts as long as you own home. Lender's policy: protects ONLY the bank. Pays bank's mortgage balance only. Decreases with your loan. Doesn't protect you AT ALL.
What's Covered
Liens recorded before sale. Undisclosed heirs claiming property. Forgery on prior deeds. Errors in public records. Fraudulent conveyance. Encroachments. Title search fee + insurance combined. NOT covered: zoning, condition of property, future events.
Who Pays
Varies by region. TX, MD, FL, IL: typically seller. CA, NY, NJ: split or buyer pays. Negotiable in contract. ALTA standard or ALTA expanded coverage. Owner's policy is one-time — never expires.
Last updated May 2026. Sources: ALTA Title Insurance.