HOW DOES TITLE INSURANCE COVERAGE VS. HOMEOWNER’S TITLE INSURANCE WORK? There are two types of title insurance: one for lenders and another for homeowners. Lenders require lender’s title insurance, but it does not cover you. A separate homeowners policy is needed to protect yourself from a claim on your home and be held financially responsible for possible unpaid property taxes from previous owners. Speak with your Buyer’s agent to understand your options.
IS A TITLE SEARCH SUFFICIENT? While most lenders require a title search, title insurance will protect those insured if any legal issues arise if anything is missed during the search.
HOW MUCH DOES TITLE INSURANCE COST?
Title insurance is a one-time fee paid at closing, which costs between $500-$3,500 depending on the state, insurance provider, and home purchase price. Some companies will offer a discount if you bundle the lender’s and owner’s policies, but typically the buyer purchases the lender’s policy, and the seller pays for the owner’s policy.