How To Get Title Insurance
You’ve read all about how to stop a lien on your property, which convinced yourself that title insurance is a must. But now you’re wondering how to get title insurance. Where do you buy one? Is it something you must ask your real estate agent?
Well, you can, but he will probably answer what we’re about to answer, as real estate agents do not sell title insurance: whenever you enter the closing process and sign the purchase agreement, your escrow agent will launch the process of getting it (if you want to). The escrow agent or your attorney will choose which of the five major US title insurance companies will underwrite your policy.
How much will it cost to get title insurance? Differently from other types of insurance, with title insurance you typically pay a one-time fee of about $1,000 – but this amount can change from state-to-state. FYI, this fee is typically included in the closing costs, so that’s why the escrow agent is the one who asks you if it should be included. Another thing that will be asked to you is if you want both kinds of title insurance: the owner’s policy and the lender’s policy.
The Lender’s policy is typically required by most lenders in order to secure your mortgage. It’s a type of insurance for them to continue getting their loan amortization should a problem with your title arrive. And the owner’s policy is what most people are referring to when they talk about title insurance: in the event of a title problem, they cover the home buyer’s costs with the problem.
Fun fact: the normal would be, of course, that the home buyer pays for both kinds of title insurances, right? However, there are some states where it’s either negotiable who gets to pay, or the home seller is the one who pays for these insurance fees. The thinking behind it is that the home seller should be the one giving away a clean title, so he’s the one who should be responsible for covering everyone should a problem arise.
So, as you can see, it’s pretty simple to learn how to get title insurance. What’s very important is that you do get one. Just like that old phrase says: better be late than sorry!
Popular Insurance Questions
Popular Insurance Glossary Terms
Monetary value of the reputation of a business. Goodwill is an intangible asset and thus may be difficult to measure. ...
Employer, association, labor union, or other group ...
Policy used to provide the funds for buy and sell agreements under which an income payment or a series of income payments is paid to the buyer of the disabled partner's interest contained ...
Critical point in the total amount of claims paid above which the excess insurance policy pays a percentage (generally 80-100%) of the claims for any policy year experience. ...
Authority to act on behalf of an individual that terminates upon its revocation or death of that individual. ...
Coverage for extra expenses associated with the reconstruction of a damaged or destroyed building where zoning requirements mandate more costly construction material. This endorsement is ...
Death payment that increases with the age of an insured. Graded benefits may increase gradually and then level off, or may increase sharply before becoming level. This type of coverage is ...
Written statements on a form by a prospective insured about himself, including assets and other personal information. These statements and additional information, such as a medical report, ...
Coverage for automobile or aircraft operators if they are sued for negligently killing or injuring a passenger. The PERSONAL AUTOMOBILE POLICY (PAP) provides MEDICAL PAYMENTS INSURANCE for ...

Have a question or comment?
We're here to help.