What Is a Title Insurance Fee?

Introduction

The title insurance fee pays for title insurance, which protects against defects in the property title—such as liens, errors in public records, or ownership disputes. Lenders typically require a lender's policy to protect their interest. Buyers may optionally purchase an owner's policy to protect themselves.

Lender vs. Owner Policy

The lender's policy protects the lender up to the loan amount and is usually required. The owner's policy protects you up to the purchase price and is optional but recommended. In some states, sellers pay for the owner's policy by custom.

Typical Costs and Shopping

Title insurance costs vary by state and loan amount. In many states, rates are regulated. Title services often appear under "Services You Can Shop For" on your Loan Estimate—shopping can save money. See What Are Closing Costs and What Is a Loan Estimate.

Frequently Asked Questions

What is title insurance?

Title insurance protects against defects in the property title—such as liens, errors in public records, or ownership disputes. Lenders typically require a lender's policy; buyers may optionally purchase an owner's policy.

How much does title insurance cost?

Costs vary by state and loan amount. Lender's title insurance often ranges from a few hundred to over a thousand dollars. Owner's title insurance, if purchased, is typically a one-time premium. Rates may be regulated by state.

Can I shop for title insurance?

Yes. Title services and insurance are often in the "Services You Can Shop For" section of your Loan Estimate. Shopping can save money; compare quotes from different title companies.

Is owner's title insurance required?

Lender's title insurance is typically required. Owner's title insurance is optional but recommended—it protects you if a title defect arises after closing.