Title insurance
A one-time policy paid at closing that protects against defects in a property's title — liens, forged deeds, unknown heirs — that could surface after you buy.
What does title insurance mean?
Title insurance guards against problems in a property's ownership history that could threaten your claim to it later. A lender's policy is required and protects the lender's interest; an owner's policy is optional but protects your equity. Unlike other insurance it is a single premium paid once at closing, not a recurring bill, and in some states the seller customarily covers the owner's policy.
Frequently asked
Do I need both a lender’s and an owner’s title policy?
The lender’s policy is required and protects only the lender. The owner’s policy is optional but protects your own equity against title defects — and because it is a one-time premium, most buyers treat it as cheap insurance on a large purchase.
How much does title insurance cost?
It varies by state and price but typically runs a few hundred to a couple thousand dollars, paid once at closing. In some states the seller customarily pays the owner’s policy, so it is worth confirming who covers what.
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