Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Title Insurance

The party that ends up paying the cost for title insurance generally varies. However, this tab is customarily picked up by the seller in several cases.

Since title insurance is designed to protect one against losses in the future, it behooves the buyer more than the seller to acquire title insurance, so in several states it is the buyer who ends up paying more often. Sometimes the buyer and seller may agree to split the costs for title insurance right down the middle.

The customs regarding all closing costs in a real estate transaction vary greatly from place to place. To get the most in-depth information on common practices in one particular area, it is wise to contact a title insurance company. If a buyer insists on choosing one particular title insurance company, then they are usually the ones who end up paying for it.

Why is title insurance important?

Obtaining title insurance is very important because it ensures that one is not responsible for any liabilities in the future and it acts as a guarantee of ownership of one’s property. An agreement on who will pay for title insurance is an important part of the negotiations between the buyer and seller.

The cost for title insurance is generally around one percent of a property’s price. In a situation when a seller is trying to make a quick sale with minimal profit at a low price, it is more likely that a buyer may end up paying the costs for title insurance. The three main options for title insurance are as follows:

  1. Basic Owner’s Title Policy Coverage
  2. Basic Lender’s Title Policy Coverage
  3. Extended Owner’s Coverage

One main criticism which comes with in regards to a standard policy which only provides the most basic coverage, is that a basic policy will not protect one against false claims which may be revealed after one purchases the property. Some of the features included in extended owner’s coverage are violations from previous owners, living trusts, and structural damages.

Buying title insurance is mandatory for all mortgage lending transactions and they provide the mortgage company with protection for the amount in which the lender is loaning to the home buyer. The difference between a lender’s policy and an owner’s policy is that a lender’s policy is written only for the amount that is borrowed and not always for the entire amount of the home.

A title insurance policy will only protect one for the original amount that the property was purchased for. This means that if the value of one’s home increases over the years, the amount of coverage will not change according to the home’s new value.

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Saving Money on Title Insurance

It is helpful to attain as much information on the subject of title insurance through online research and by speaking to a qualified title insurance company representative.

An example of how research will end up paying off is finding out that one may be eligible to save money on their title insurance policy by simply getting a copy of the previous title insurance policy from the owner. Incentives like these may be overlooked if one is not aware of them.

Comparing quotes from multiple insurance companies may be a bit more time consuming, but it is well worth it because it is the best way to guarantee that one receives the lowest price possible. One can start comparing free quotes on this page now by entering your zip code.