Title Insurance Cost Calculator

Do I need both owner's and lender's title insurance?

Lender's title insurance is mandatory whenever you finance the purchase, protecting the bank's interest in the property, not you. Owner's title insurance is optional but strongly recommended since it protects your equity against title defects discovered after closing; without it, you'd bear the full legal cost of fighting a claim or losing the property to a prior undiscovered lien.

Why is lender's coverage so much cheaper when bought at the same time as owner's coverage?

This is called a simultaneous-issue rate, and most states allow insurers to issue the lender's policy at a steep discount, sometimes just a few hundred dollars, when both policies are written together off the same title search. Buying lender's coverage alone later, like during a refinance, costs the full standalone rate instead.

Who pays for title insurance, buyer or seller?

It varies by region and is often negotiable in the purchase contract. In many states the buyer pays for both policies; in others (like parts of California and the Northeast) it's customary for the seller to pay for the owner's policy while the buyer covers the lender's policy. Check local custom and your contract terms.

Does title insurance cover things found after I already own the home?

Yes, that's its main purpose — an owner's policy covers claims that surface after closing but stem from title defects that existed before you bought, like an undisclosed heir claiming ownership or a contractor's lien from before your purchase. It doesn't cover title problems you create yourself after taking ownership.